Question: In the month of June, Paula's Beauty Salon gave 3400 haircuts, shampoos, and permanents at an average price of $34. During the month, fixed costs were $12716 and variable costs were 83% 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.