In the month of April Avante Salon gave 2500 haircuts shampoos and permanents at an average price of $40. During the month fixed costs were $20000 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 April Avante Salon gave 2500 haircuts shampoos and permanents at an average price of $40. During the month fixed costs were $20000 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 April Avante Salon Gave 2500 Haircuts