Jose Hebert's Beauty Salon_contribution margin_break-even point_margin of safety
Question # 00012957
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Updated on: 04/21/2014 12:21 AM Due on: 12/31/2015
In the month of June, Jose Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sales.
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.
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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Solution: Jose Hebert's Beauty Salon_contribution margin_break-even point_margin of safety