Question

n the month of June, Jose Hebert’s Beauty Salon gave 4,125 haircuts, shampoos, and permanents at...

n the month of June, Jose Hebert’s Beauty Salon gave 4,125 haircuts, shampoos, and permanents at an average price of $25. During the month, fixed costs were $16,500 and variable costs were 75% of sales.

(a)

Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin and contribution margin per unit to 2 decimal places, e.g. 5.75.)

Contribution margin

$
Contribution margin per unit

$
Contribution margin ratio
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Homework Answers

Answer #1
Sales revenue = 4125 *$25
=$103125
Variable cost = $103125*75% =77343.75
Contribution margin in dollar = sales revenue - variable cost
=$103125-77343.75
=25781.25
Contribution Margin Per Unit = Sales price - variable cost per unit
= $25-($25*75%)
= $6.25 per unit
Contribution margin ratio = contribution margin per unit / sales price per unit
=6.25 /25
=25%
NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE
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