In the month of June, Jose Hebert's Beauty Salon gave 3,400 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $19,000 and variable costs were 60% of sales.
1. Determine the contribution margin in dollars, per unit, and as a ratio.
2. Using the contribution margin technique, compute the break-even point in dollars and in units.
3. Compute the margin of safety in dollars and as a ratio.