Help please! Part 1 Exercise 19-2 In the month of June, jose Hebert\'s Beauty Sa
ID: 2546941 • Letter: H
Question
Help please! Part 1 Exercise 19-2 In the month of June, jose Hebert's Beauty Salon gave 3,900 hasirauts, shampoos, and permanents a $16,800 and variable costs were 75% of sales. 19-2 an average price of $40. During the month, fioxed costs were Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin ratio to 2 declmal Contribution margin Contribution margin per unit Contribuition margin ratio Using the contribution margin technique, comoute the break-even point in dollars and in units. (Round answers to o decimal places, o.g. 1,225) Break-even point Break-even point units Compute the margin of safety in dollars and as a ratio. (Round answers to O decimal places,e.g. 1,225) Margin of safety Margin of safety ratioExplanation / Answer
Sales (3800 x $ 40) = $ 152000
Less : Variable Cost (75%) = $ 114000
Contribution = $ 38000
1- Contribution Margin = $ 38000
2.Contribution Margin per Unit = $ 38000/3800 = $ 10/Unit
3.Contribution Margin Ratio = $ 38000/$152000 * 100 = 25%
4. Break-even point (total sales): = FC / Contribution Ratio
= $ 16800/25%
= $ 67,200
5.Break-even point (units) = FC / (SP-VC)
= 16800 / (40 – 30)
= 1,680.00
6.Margin of safety =Actual Sales – Break Even Sales
= $152000 - $ 67200
= $ 84800
7. Margin of safety ratio = $ 84800/$152000 x 100
= 55.79%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.