Questions -
Q1. In the month of June, Paula's Beauty Salon gave 3,800 haircuts, shampoos, and permanents at an average price of $32. During the month, fixed costs were $17,664 and variable costs were 77% 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.
Q2. Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.
Pairs of Shoes: Unit sales price: $110 Unit variable costs $70 Unit contribution margin $40 Sales mix 30%, Pairs of Cloves: Unit Sales price $30 Unit variable costs $10 Unit contribution margin $20 Sale mix 40%
Range finder: Unit sales price $260 Unit variable costs $190 Unit contribution margin $70 Sales mix 30%
Fixed costs are $773,260.
Compute the break-even point in units for the company.
Determine the number of units to be sold at the break-even point for each product line.