Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the month of June, Paula's Beauty Salon gave 3,700 haircuts, shampoos, and permanents at an average price of $34. During the month, fixed costs

In the month of June, Paula's Beauty Salon gave 3,700 haircuts, shampoos, and permanents at an average price of $34. During the month, fixed costs were $13,600 and variable costs were 80% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 10.50, and the other answers to 0 decimal places, e.g. 125.) 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. 125.) Break-even point in dollars $ Break-even point in units Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.) Margin of safety in dollars $ Margin of safety ratio %

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

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

understand what working means to workers;

Answered: 1 week ago