I need assistance with part C In the month of June, Jose Hebert’s Beauty Salon g

Question

I need assistance with part C

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 $ 16,600 and variable costs were 75% of sales.

A. Determine the contribution margin in dollars, per unit and as a ratio.

Contribution margin 29250

B.Using the contribution margin technique, compute the break-even point in dollars and in units.

Break-even point 66400

C.

Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.)

Margin of safety No Idea

Contribution margin 29250

Explanation / Answer

Total sales=(30*3900)=117000

margin of safety=Total sales-Breakeven sales

=(30*3900)-66400=$50600

MOS%=MOS/Total sales

=(50600/117000)=43%(Approx).

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