In the month of June, Natalie's Beauty Salon gave 2,500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $19,000 and variable costs were 75% of sales.
Instructions
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
(c) Compute the margin of safety dollars and as a ratio.

Question

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The Answer of In the month of June, Natalie's Beauty Salon gave 2,500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $19,000 and variable costs were 75% of sales.
Instructions
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
(c) Compute the margin of safety dollars and as a ratio.

In the Month of June, Natalie's Beauty Salon Gave 2,500