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In the month of March, Style Salon services 610 clients at an average price of $

ID: 2562810 • Letter: I

Question

In the month of March, Style Salon services 610 clients at an average price of $ 140 . During the month, fixed costs were $ 21,462 and variable costs were 65 % of sales.

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In the month of March, Style Salon services 610 clients at an average price of $ 140 . During the month, fixed costs were $ 21,462 and variable costs were 65 % of sales.

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Explanation / Answer

Particulars Overall Per Unit Sales (A) 85400 140 Less: Variable Cost 55510 91 Contribution Margin (B) 29890 49 Contribution Margin Ratio (C = B/A) 35.00% 35.00% Particulars Per Unit Sales (A) 140 Less: Variable Cost 91 Contribution Margin (B) 49 Contribution Margin Ratio (C = B/A) 35.00% Fixed Cost (D) 21462 Break Even in $ Sales (D/C) 61320 Break Even in Units (D/B) 438

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