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Jose Hebert's Beauty Salon
In the month of June, Jose Hebert's Beauty Salon gave $4,000 haircuts, shampoos, and permanents at an average price of $30.00. During the month during the month, fixed costs were $16,800 and variable costs were 75% of sales.
Instructions:
(a) Determine the contribution margin in dollars, per unit and as a ratio
(b) Using the contribution margin technique, compute the break-even point in dollars and in units
(c) Compute the margin of safety in dollars and as a ratio
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