Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the month of June, Jose Hebert's Beauty Salon gave4,000haircuts, 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 gave4,000haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800and variable costs were75% of sales.

Determine the contribution margin in dollars, per unit, and as a ratio. (Round the contribution ratio to 0 decimal places, e.g. 27%, contribution margin per unit to 2 decimal places, e.g. 15.25 and answer to the nearest whole dollar, e.g. 5,275.)

Contribution Margin in Dollars $
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. 1,750.)
Break-even sales (in dollars) $
Break-even sales (in units)

units

Determine the contribution margin in dollars, per unit, and as a ratio. (Round the contribution ratio to 0 decimal places, e.g. 27%, contribution margin per unit to 2 decimal places, e.g. 15.25 and answer to the nearest whole dollar, e.g. 5,275.)
Contribution Margin in Dollars $
Contribution Margin Per Unit $
Contribution Margin Ratio %

Warning

Don't show me this message again for the assignment

Ok Cancel
Link to Text
Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,750.)
Break-even sales (in dollars) $
Break-even sales (in units) units

Warning

Don't show me this message again for the assignment

Ok Cancel
Link to Text
Compute the margin of safety in dollars and as a ratio. (Round the Margin of Safety ratio to 0 decimal places, e.g. 27%.)
Margin of safety (in dollars): $
Margin of safety (ratio): %

Warning

Don't show me this message again for the assignment

Ok Cancel
Click if you would like to Show Work for this question: Open Show Work Modify Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Cost Accounting

Authors: William Lanen, Shannon Anderson

2nd Edition

0071332618, 978-0071332613

More Books

Students also viewed these Accounting questions

Question

Wear as little as possible

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago