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In the month of June, Blossom Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $45. During the month, fixed costs were $17,100 and variable costs were 75% of sales. (a) Your answer is correct. 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 $ tA $ 45000 11.25 25 %

In the month of June, Blossom Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $45. During the month, fixed costs were $17,100 and variable costs were 75% of sales. (a) Your answer is correct. 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 $ tA $ 45000 11.25 25 %

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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Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even point in dollars $ Break-even point in units
Transcribed Image Text:Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even point in dollars $ Break-even point in units
In the month of June, Blossom Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $45. During the month, fixed costs were $17,100 and variable costs were 75% of sales. (a) Your answer is correct. 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 45000 11 11.25 25 %
Transcribed Image Text:In the month of June, Blossom Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $45. During the month, fixed costs were $17,100 and variable costs were 75% of sales. (a) Your answer is correct. 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 45000 11 11.25 25 %
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