In the month of March, Style Salon services 580 clients at an average price of $180. During the month, fixed costs were $28,539 and variable costs were 65% of sales.
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
| Contribution margin |
|
$
|
|
| Contribution margin per unit |
|
$
|
|
| Contribution margin ratio |
|
|
% |
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
| Break-even sales |
|
$
|
|
| Break-even sales |
|
|
units |