Owe 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 marginUnit contribution marginContribution margin ratio450001111.2525%

Break Even Point -Break Even point is a point where company earns no profit no loss from the sales.…

Answered: In the month of June, Blossom Hebert's…

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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In the month of June, Sunland Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50. During the month, fixed costs were $16,000 and variable costs were 75% of sales. Determine the contribution margin in dollars, per unit and as ratio Using the contribution margin technique, compute the break-even point in dollars and in units. Compute the margin of safety in dollars and as a ratio.
Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total variable expenses were $136,120, and fixed expenses were $37,000. Required: 1. What is the company's contribution margin (CM) ratio?
Calculate the contribution margin per unit for this year. (Round Contribution margin per unit to 2 decimal places, e.g. 0.38.) Contribution margin per unit $
Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $10 per unit, and fixed expenses total $190,000 per year. Its operating results for last year were as follows: Sales (23,000 units) Variable expenses Contribution margin Fixed expenses Operating income Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. 3. Assume this year's total sales increase by $40,000. If the fixed expenses do not change, how much will operating Income Increase? Assume that the operating results for last year were as in the question data. 4-a. Compute the degree of operating leverage based on last year's sales. 4-b. The president expects sales to increase by 16% next year. Using the degree of operating leverage from last year, what percentage Increase in operating Income will the company realize this year?…
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $585,000 and incur total variable cost of $372,000. Total fixed cost is expected to be $60,000. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,630.34 X Variable 1 2.33 Suppose that the company charges $7.20 per tanning session. Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,400 tanning sessions this month.
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $315 per unit and cost $214.20 per unit in variable costs to make. Fixed costs total $66,000. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: Denominator: 3. Compute Income if 6,200 units are produced and sold Income Contribution Margin Ratio Contribution margin ratio 0
Last month, Laredo Company sold 510 units for $55 each. During the month, fixed costs were $5,478 and variable costs were $22 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution margin and contribution margin ratio. Unit Contribution Margin Contribution Margin Ratio %
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herri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,630.34 X Variable 1 2.33 Suppose that the company charges $7.20 per tanning session. Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,400 tanning sessions this month. Complete this question by entering your answers in the tabs below. Unit CM CM Ratio Total CM Calculate the unit contribution margin. (Round your final answer to 2 decimal places.) = Unit Contribution Margin Unit CM CM
Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients 4,591,46 2.42 Suppose that the company charges $6.20 per tanning session. Required: 1. Calculate the unit contribution margin. 2. Calculate contribution margin ratio. 3. Calculate the total contribution margin if the shop books 1,300 tanning sessions this month. Intercept X Variable 11 Complete this question by entering your answers in the tabs below. Unit CM CM Ratio Total CM Calculate the unit contribution margin. Note: Round your final answer to 2 decimal places. Unit Contribution Margin

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