In the morth ct March. Style Salon service; 610 cli rits at an avaraqa prica at

Question

In the morth ct March. Style Salon service; 610 cli rits at an avaraqa prica at si 20. During the month, fixed costs ware s21.024 and variable costs mere sa nt sales. Determine the cortrbution margin in dalars, per unit, and Contribuicn margin Cantributien mancin per unit Contibuticn margin ratio a ratio. (Round answers to 0 decinapices. 4· 1,225.) Using the contribution marpin technique, compute the break even point in dallars and in urits. (Round ansivers to O decimal pleces, e.g. 1,225.) Broak-ecn sacs

Explanation / Answer

Contribution margin=(Sales-Variable costs)

Contribution margin (120(1-0.6))*610=$29280 Contribution margin per unit 120(1-0.6)=48 Contribution margin ratio(Contribution margin/Sales) (48/120)=40%

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