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.

The following information relates to Oil Change Company. Oil Change Co. Projected Net Income For a Week Sales (160 cars serviced at $24 per car) Variable Expenses (160 cars at $9 per car) Contribution Margin Fixed Expenses Net Income Calculate the following: (i) Unit Contribution: (ii) Total Contribution: (iii) Break Even Point in Units (iv) Break Even Point in Dollars (v) Net Profit: $3,840 - 1,440 2,400 - 2,400 $ 0

Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows:     Coefficients Intercept 4,649.75 X Variable 1 2.12     Suppose that the company charges $7.40 per tanning session.   Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,000 tanning sessions this month.

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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how many dollars of revenue must the company generate in order to reach the break-even point? Round to two decimal places.

Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 59,000 units and $2,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? $ 1,000,000 500,000 500,000 200,000 $ 300,000 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the…

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