In the month of March, Style Salon services 580 clients at an average price of $

Question

In the month of March, Style Salon services 580 clients at an average price of $ 190. During the month, fixed costs were s 24,966 and variable costs were 70 % of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.,) Contribution margin Contribution margin per unit ontribution margin ratio LINK TO TEXT VIDEO: APPLIED SKILLS Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to O decimal places, e.g. 1,225.) Break-even sales Break-even sales Click if you would like to Show Work for this question: units Open Show Work

Explanation / Answer

1) Contribution margin = 190*30%*580 = $33060

Contribution margin per unit = 190*30% = $57

Contribution margin ratio = 57*100/190 = 30%

2) Break even sales = 24966/.30 = $83220

Break even sales = 24966/57 = 438 Units

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