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