Problem - In the month of June, Paula's Beauty Salon gave 3,600 haircuts, shampoos, and permanents at an average price of $38. During the month, fixed costs were $13,984 and variable costs were 84% of sales.
Determine the contribution margin in dollars, per unit, and as a 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.