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Determine the contribution margin in dollars

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Reference no: EM132483091

In the month of June, Jose Hebert's Beauty Salon gave 4,175 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $16,700 and variable costs were 75% of sales.

Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin and contribution margin per unit to 2 decimal places, e.g. 5.75.)

Contribution Margin $_________

Contribution Margin per unit $____________

Contribution Margin Ratio ___________

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

Break even point $_____________

Break even point __________ units

Compute the margin of safety in dollars and as a ratio.

Margin of safety $_____________

Margin of safey __________ %

Reference no: EM132483091

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