Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
In June, Jose Hebert's Beauty Salon gave 4,360 haircuts, shampoos, and permanents at an average price of $36. During the month, fixed costs were $17,700 and variable costs were 72% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Find out correct answers
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps
Knowledge Booster
Similar questions
- In the month of June, Jose Hebert’s Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,500 and variable costs were 75% of sales. 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 $ Contribution margin per unit $ Contribution margin ratio % Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,225.) Break-even point $ Break-even point units Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.) Margin of safety $ Margin of safety ratio %arrow_forwardIn the month of June, Jose Hebert’s Beauty Salon gave 4,125 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $16,500 and variable costs were 75% of sales. (a) Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin and contribution margin per unit to 2 decimal places, e.g. 5.75.) Contribution margin $ Contribution margin per unit $ Contribution margin ratio %arrow_forwardVikrambhaiarrow_forward
- Owearrow_forwardIn the month of June, Sunland Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50. During the month, fixed costs were $16,000 and variable costs were 75% of sales. Determine the contribution margin in dollars, per unit and as ratio Using the contribution margin technique, compute the break-even point in dollars and in units. Compute the margin of safety in dollars and as a ratio.arrow_forwardIn the month of August, Beauty Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars? Contribution margin per unit? Contribution margin ratio? Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales? (in dollars) Break-even sales? (in units)arrow_forward
- In June, Wildhorse Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $ 50. During the month, fixed costs were $ 31,000 and variable costs were 80% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Contribution margin (in dollars) 2$ Contribution margin (per unit) Contribution margin (ratio) % Using the contribution margin technique, compute the break-even sales dollars and sales units. Break-even sales dollars $ Break-even sales units units Compute the margin of safety dollars and as a ratio. (Round answers to 0 decimal places, e.g. 5,275.) Margin of safety in dollars $ Margin of safety ratio %24arrow_forwardacarrow_forwardddarrow_forward
- In the month of April, Carly's Carwash provided 3,000 car washes at an average price of $25. Fixed costs are $9,300 and variable costs are 85% of sales. Compute the margin of safety ratio. 2.60% 17.33% 20.97% 15.00% eTextbook and Media hparrow_forwardLast month Annie's Homemade total sales and variable costs for 6-ounce servings were $18,000 and $4,500, respectively. Its total sales and variable costs for 8-ounce servings were $7,000 and $1,750, respectively. Its total fixed costs for the month were $11,000. Required: 1. What was last month's overall contribution margin ratio? 2. Using last month's data, what is the company's overall break-even point in dollar sales? Note: Round up to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What was last month's overall contribution margin ratio? The overall contribution margin ratio was %arrow_forwardSherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Number of Total Month Appointments Cost $6,100 5,000 6,650 January 300 February 200 March 500 April 425 6,050 6,500 5,050 Мay 350 June 275 Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.) Variable Cost per Unit Fixed Costarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub