E6-2 - Jose Hebert's Beauty Salon

E6-2 - Jose Hebert's Beauty Salon

In the month of June, Jose Hebert's Beauty Salon gave $4,000 haircuts, shampoos, and permanents at an average price of $30.00. During the month during the month, fixed costs were $16,800 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 in dollars and as a ratio