In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales.
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
| Contribution margin |
$ |
||
| Contribution margin per unit |
$ |
||
| Contribution margin ratio |
|
% |
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
| Break-even sales |
$ |
||
| Break-even sales |
|
units |