Determine the contribution margin in dollars

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1.In the month of June, Paula's Beauty Salon gave 3,800 haircuts, shampoos, and permanents at an average price of $32. During the month, fixed costs were $17,664 and variable costs were 77% of sales.

. Determine the contribution margin in dollars, per unit, and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 10.50, and the other answers to 0 decimal places, e.g. 125.)

. Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 125.)

2. Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.
Pairs of Shoes: Unit sales price: $110 Unit variable costs $70 Unit contribution margin $40 Sales mix 30%, Pairs of Cloves: Unit Sales price $30 Unit variable costs $10 Unit contribution margin $20 Sale mix 40%
Range finder: Unit sales price $260 Unit variable costs $190 Unit contribution margin $70 Sales mix 30%
Fixed costs are $773,260.

. Compute the break-even point in units for the company. (Round computation for weighted-average contribution margin to 2 decimal places, e.g. 10.50, and final answer to 0 decimal places, e.g. 125.)

. Determine the number of units to be sold at the break-even point for each product line. (Round answers to 0 decimal places, e.g. 125.)

Reference no: EM13134869

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