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.

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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