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Compute the margin of safety in dollars and as a ratio

Question:

In the month of June, Jose Heberts Beauty Salon gave 3,560 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,900 and variable costs were 75% of sales.

a) Determine the contribution margin in dollars, per unit and as a ratio

b) Using the contribution margin technique, compute the break-even point in dollars and in units

c) Compute the margin of safety in dollars and as a ratio

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