Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. 5.25 & 10.50.) Contribution margin 24 41750.00 Contribution margin per unit %$. 10.00 25 Contribution margin ratio

Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. 5.25 & 10.50.) Contribution margin 24 41750.00 Contribution margin per unit %$. 10.00 25 Contribution margin ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In the month of June, Jose Hebert's Beauty Salon gave 4,200 haircuts, shampoos, and permanents at an average price of $40. During
the month, fixed costs were $16,700 and variable costs were 75% of sales.
Your answer is partially correct.
Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin
ratio to 2 decimal places, e.g. 5.25 & 10.50.)
Contribution margin
%24
41750.00
Contribution margin per unit
2.
10.00
25
Contribution margin ratio

Compute the margin of safety in dollars and as a ratio. (Round answers to O decimal places, eg. 1,225.)
Margin of safety
24
Margin of safety ratio

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