Using the contribution margin technique, compute the break-even point in dollars and in units.Break-even sales $Break-even salesunits. In the month of March, Carla Vista Salon services 650 clients at an average price of $110. During the month, fixed costs were$14,256 and variable costs were 70% of sales.

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Using the contribution margin…

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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Please explain this statement thoroughly. "To estimate what the profit will be at various levels of activity, multiply the number of units to be sold above or below the break-even point by the unit contribution margin."
Please help me. Thankyou.
Change in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
6. The unit contribution margin is computed by⦁ subtracting the variable cost per unit from the sales price per unit.⦁ dividing the sales revenue by variable cost per unit.⦁ dividing the variable cost per unit by the sales revenue.⦁ subtracting the sales price per unit from the variable cost per unit.
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.
At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed expenses = variable expenses c) sales + variable expenses = contribution margin d) contribution margin + fixed expenses = net income
When the sales price per unit decreases, the contribution margin per unit A. decreases B. increases OC. increases proportionately OD. remains the same 13
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000

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