In the month of June, Jose Heberts Beauty Salon gave 4,125 haircuts, shampoos, and permanents at an average price of $25. During the month, fixed costs were $16,500 and variable costs were 75% of sales.

(a)

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Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin and contribution margin per unit to 2 decimal places, e.g. 5.75.)

Contribution margin		$
Contribution margin per unit		$
Contribution margin ratio			%

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(b)

Using the contribution margin technique, compute the break-even point in dollars and in units.

Break-even point		$
Break-even point			units