Calculate the contribution margin in dollars

Question

1) Burns Company incurred the following costs during the year: direct materials $23 per unit; direct labor $14 per unit; variable manufacturing overhead $17 per unit; variable selling and administrative costs $9 per unit; fixed manufacturing overhead $125,000; and fixed selling and administrative costs $11,000. Burns produced 15,625 units and sold 6000 units.

Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing.

				Manufacturing cost
(a)		Absorption Costing		$
(b)		Variable Costing		$

2) In the month of June, Jose Hebert's Beauty Salon gave 3,210 haircuts, shampoos, and permanents at an average price of $39. During the month, fixed costs were $16,540 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 & 25%.) Margin of safety $ Margin of safety ratio %