Compute the break-even point in dollars and in units

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Question - In the month of June, Mandeep's Beauty Salon gave 2,100 haircuts, shampoos and permanents at an average price of $32. During the month, fixed costs were $13,700 and variable costs were 75% of sales.

Required -

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

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

3. Compute the margin of safety in dollars.

Reference no: EM133099394

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