Determine the contribution margin in dollars

Assignment Help Financial Accounting

Reference no: EM13922005

In the month of June, Jose Hebert's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $ 16,500 and variable costs were 75% 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: EM13922005

Questions Cloud

Assume that the company closes its books on december : Prepare an income statement, statement of changes in equity, balance sheet and statement of cash flows for each of the 2013, 2014, 2015, and 2016 accounting periods.

Evaluate of the current market situation : Evaluate of the current market situation, Identify objectives of this communication program and develop an Integrated Marketing Communication program using at least two of the tools.

Explain the reason for this welfare loss : By using an appropriate diagram show that the imposition of a unit tax on a particular good or service causes a welfare loss. Explain the reason for this welfare loss.

Reduction in the depletion region width means : [T] [F] A reduction in the depletion region width means that the diode has been reversed biased. 2. [T] [F] To forward bias a diode, a positive potential must be supplied to the n-type region of the diode.

Determine the contribution margin in dollars : Determine the contribution margin in dollars, per unit, and as a ratio.Using the contribution margin technique, compute the break-even point in dollars and in units.Compute the margin of safety in dollars and as a ratio.

How will an increase in the production costs of b affect : Suppose there are two goods A and B in the economy and these two goods are complementary of each other. At the beginning, the market for each good is in equilibrium. How will an increase in the production costs of B affect both markets?

Which event will michael decide to attend explain why : Which event will Michael decide to attend? Explain why. How much would Fred have to charge Michael for the concert ticket in order to make Michael not care which event he attended? Explain why.

Fargo memorial hospital has annual net patients : Fargo Memorial Hospital has annual net patients service revenues of $14,400,000. It has two major third-payers, plus some of its patients are self-payer. The hospitals patients accounts manager estimates that 10% percent of the hospitals paying patie..

Identify the skills and abilities required for managing : Discuss and critically evaluate the view that a strong organisational culture should be a top management priority and Examine and critically evaluate the extent to which the classical, behavioural, and quantitative, approaches to management put peop..

User Account

All Pages