Question 2 In the month of June, Barbara's Beauty Salon gave 2,700 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $18,000 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin (in dollars) $ 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 (in dollars) $ Break-even point (in units) units Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.) Margin of safety (in dollars) $ Margin of safety (ratio) %
Question 2
In
the month of June, Barbara's Beauty Salon gave 2,700 haircuts,
shampoos, and permanents at an average price of $30. During the month,
fixed costs were $18,000 and variable costs were 70% of sales.
Determine the contribution margin in dollars, per unit, and as a ratio.
Contribution margin (in dollars)
$
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 (in dollars)
$
Break-even point (in units)
units
Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.)
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