in the month of June, Jose Hebert\'s Beauty Salon gave 3,900 haircuts, shampoos,

Question

in the month of June, Jose Hebert's Beauty Salon gave 3,900 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sales. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, og Determine the contribution margin in dollars, per unit and as a ratio. 5.25 & 10.50.) Contribution margin Contribution margin per unts Contribution margin ratio LINK TO TEXT Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to O decimal places, o.g. 1,225.) Break-even point Break-even point units LINK TO TEXT VIDEOs SIMILAR EXERCISE Compute the margin of safety in doliars and as a ratio. (Round answers to 0 decimal places, e.g.1,225.) Margin of safety Margin of safety ratio

Explanation / Answer

Contribution margin = 30-(30*75%) = 7.5*3900 = 29250

Contribution margin per unit = 7.5 per unit

Contribution margin ratio = 7.5*100/30 = 25%

Break even point dollars = 16800/.25 = 67200

Break even point in units = 16800/7.5 = 2240 units

Margin of safety in dollars = 3900-2240 = 1660*30 = 49800

Margin of safety ratio = 49800*100/117000 = 43%

Note : Please next question post individually for answer

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.