E6.2 (LO 1), AP In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $30 each. During the month, fixed costs were $16,800 and variable costs were 75% of sales. Instructions Determine the contribution margin in dollars, per unit and as a ratio. Using the contribution margin technique, compute the break-even point in sales dollars and in sales units. Compute the margin of safety in dollars and as a ratio.

E6.2 (LO 1), AP In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $30 each. During the month, fixed costs were $16,800 and variable costs were 75% of sales. Instructions Determine the contribution margin in dollars, per unit and as a ratio. Using the contribution margin technique, compute the break-even point in sales dollars and in sales units. Compute the margin of safety in dollars and as a ratio.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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