Compute the margin of safety in dollars and as a ratio

Assignment Help Financial Accounting

Reference no: EM13823287

In the month of June, Jose Hebert's Beauty Salon gave 3,400 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $19,000 and variable costs were 60% of sales.

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 and as a ratio.

Reference no: EM13823287

Questions Cloud

Prepare an analysis of the market to present : Prepare an analysis of the market to present to Bob and his management team on the state of his market as well as any possible opportunities.

About the bond investment transactions : Journalize the entries to record the following selected bond investment transactions for Supper Club Trust: For a compound transaction, if an amount box does not require an entry, leave it blank.

Define the magnification : Magnification

Calculate net cash provided or used by operating activities : A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as ..

Compute the margin of safety in dollars and as a ratio : In the month of June, Jose Hebert's Beauty Salon gave 3,400 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $19,000 and variable costs were 60% of sales. Compute the margin of safety in dollars and as..

Journal entry to record the issuance of the bonds : Wainwright Electric sold $2,278,000, 10%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and pay interest July 1 and January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2014. (Credit account titles..

The thin lens equation : The Thin Lens Equation

Aggressive in collecting receivables to reduce carrying cost : Suppose the company decides it needs to be more aggressive in collecting receivables to reduce carrying costs. In order to accomplish this, it contracts with a vendor to provide follow-up services for a quarterly cost of $500 per account (customer).

Explain methods for artificial aggregate productions : Explain methods FOR artificial aggregate productions :1. Cold-bonding method (EXPLAIN detailed)2. Sintering Method (EXPLAIN detailed)

User Account

All Pages