Question 1 In the month of Mard Style Salon services 590 dients at an average pr

Question

Question 1 In the month of Mard Style Salon services 590 dients at an average price of $190. During the month, n ed costs were S25 718 and variable costs were 68% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round answers to O decimal places, e.g. 1,225) Contribution ma Contribution margin per unit Contribution margin ratio Using the contribution margin technique, compute the break-even point in dolars and in units. (Round answers to 0 decimal places, e.g. 1,225.) Break-even sales Break-even sales units

Explanation / Answer

Contribution margin = (190-129.20)*90 = 5472

Contribution margin per unit = (190-129.20) = 60.80 per unit

Contribution margin ratio = 60.8*100/190 = 32%

Break even sales = 26718/.32 = 83494

Break even units = 83494/190 = 439 units

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