Question
In the month of June, Jose Hebert's Beauty Salon gave3,700haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were
In the month of June, Jose Hebert's Beauty Salon gave3,700haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800and variable costs were 75% of sales.
Determine the contribution margin in dollars, per unit and as a ratio.(Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. 5.25 & 10.50.)
Contribution margin$
Contribution margin per unit$
Contribution margin ratio
%
Using the contribution margin technique, compute the break-even point in dollars and in units.(Round answers to 0 decimal places, e.g. 1,225.)
Break-even point$
Break-even point
units
Compute the margin of safety in dollars and as a ratio.(Round answers to 0 decimal places, e.g. 1,225.)
Margin of safety$
Margin of safety ratio
%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started