dd In the month of June, Sheridan Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $4During the month, fixed costs were $18,000 and variable costs were 75% of sales.(a)Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g.5.75.)Contribution marginUnit contribution margin $Contribution margin ratioLA%

Contribution margin is the difference between the sale revenue and variable cost.

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eridan Hebert's Beauty Salon gave 4,000 haircuts, shampo costs were $18,000 and variable costs were 75% of sales.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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Question

In the month of June, Sheridan Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $4
During the month, fixed costs were $18,000 and variable costs were 75% of sales.
(a)
Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g.
5.75.)
Contribution margin
Unit contribution margin $
Contribution margin ratio
LA
%

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