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In the month of March, Style Salon services 560 clients at an average price of $120....

In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales.

Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio.

Contribution margin in dollars

$enter your answer in dollars

Contribution margin per unit

$enter your answer in dollars

Contribution margin ratio

enter your answer in percentages

 %

eTextbook and Media

  

  

Using the contribution margin technique, compute the break-even point in dollars and in units.

Break-even sales

$enter your answer in dollars

Break-even sales

enter a number of units

 units
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Answer #1
Sales revenue $       67,200
(560*$120)
Less:
Variable cvost (60%) $       40,320
Contribution margin $       26,880
Contribution Margin Per unit $               48
($26880/560)
Contribution margin % 40.00%
($48/120)
Break-even sales 52560
($21024/40%)
Break-even sales 438
($21024/48)
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