In the month of June, Sunland Hebert's Beauty Salon gave4,000haircuts, shampoos, and hair colorings at an average price of $50. During the month, fixed costs were $16,000and 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		$enter a dollar amount
Unit contribution margin		$enter a dollar amount rounded to 2 decimal places
Contribution margin ratio		enter percentages	%

b) Using the Contribution margin technique, compute the break-even point in dollars and in units.

Break-even point $

Break-even point Units

c) Compute the margin of safety in dollars and as a ratio

Margin of Safety $

Margin of safety ratio %