Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the month of March, Crane Salon services 610 clients at an average price of $140. During the month, fixed costs were $20,335 and variable

image text in transcribedimage text in transcribed

In the month of March, Crane Salon services 610 clients at an average price of $140. During the month, fixed costs were $20,335 and variable costs were 65% of sales. Your answer is correct. Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars 29,890 Contribution margin per unit 49 Contribution margin ratio 35 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales 581 Break-even sales 415 units In 2019, Crane Company had a break-even point of $319,000 based on a selling price of $4 per unit and fixed costs of $127,600. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $453,000. Your answer is partially correct. Try again. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.) Variable costs per unit 2.40 X Contribution margin ratio 4 % SHOW SOLUTION LINK TO TEXT LINK TO TEXT * Your answer is incorrect. Try again. Compute the increase in fixed costs for 2020. X Increase in fixed cost 127,600 $

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

11th Edition

1264229739, 9781264229734

More Books

Students also viewed these Accounting questions