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Determine the contribution margin in dollars, per unit, and as a ratio. (Rou

Determine the contribution margin in dollars, per unit, and as a ratio. (Rou

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In June, Blossom Salon gave 3,000 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $32,040 and variable costs were 70% of sales. (a) Determine the contribution margin in dollars, per unit, and as a ratio. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Contribution margin (in dollars) Contribution margin (per unit) Contribution margin (ratio) %
Transcribed Image Text:In June, Blossom Salon gave 3,000 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $32,040 and variable costs were 70% of sales. (a) Determine the contribution margin in dollars, per unit, and as a ratio. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Contribution margin (in dollars) Contribution margin (per unit) Contribution margin (ratio) %
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