Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the month of June, Sunland Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50. During the month,

image text in transcribedimage text in transcribed

In the month of June, Sunland Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50.

During the month, fixed costs were $16,000 and variable costs were 75% of sales.

(a)

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

5.75.)

Contribution margin

Unit contribution margin

Contribution margin ratio

In the month of June, Sunland Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50. During the month, fixed costs were $16,000 and variable costs were 75% of sales. (a) Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 5.75.) Contribution margin Unit contribution margin Contribution margin ratio $ $ What is the break-even point in sales dollars? Break-even point What is the margin of safety in sales dollars and as a ratio? Margin of safety Margin of safety ratio If the company wishes to increase its total dollar contribution margin by 30% in 2022, by how much will it need to increase its sales dollars if all other factors (other than sales quantity) remain constant? Total increase in sales required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions