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Marj Plimpton is the owner of a hairdressing salon in New York City. Her salon provides three basic services: shampoo and set, permanent, and cut
Marj Plimpton is the owner of a hairdressing salon in New York City. Her salon provides three basic services: shampoo and set, permanent, and cut and blow dry. Its operating results from the past quarter follow.
Type of Service | Number of Customers | Total Sales | Contribution Margin in Dollars | |||
Shampoo and set | 1,200 | $24,000 | $14,700 | |||
Permanent | 420 | 21,000 | 15,120 | |||
Cut and blow dry | 1,000 | 15,000 | 10,000 | |||
2,620 | $60,000 | $39,820 | ||||
Total fixed costs | 40,000 | |||||
Profit (loss) | $ (180) |
Compute the breakeven point in units based on the weighted-average contribution margin for the sales mix. Round your intermediate and per unit computations to the nearest cent. ____ units
Breakeven point for each product: | |
Shampoo and set | ______ units |
Permanent | ______ units |
Cut and blow dry | ______ units |
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