ella mae simpson is the owner of a hairdressing salon in palm coast florida 544666
Sales Mix Analysis
Ella Mae Simpson is the owner of a hairdressing salon in Palm Coast, Florida. Her salon provides three basic services: shampoo and set, permanents, and cut and blow dry. The following are its operating results from the past quarter:
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|
Type of Service |
Number of Customers |
Total Sales |
Contribution Margin in Dollars |
|
Shampoo and set |
$1,200.00 |
$24,000.00 |
$14,700 |
|
Permanents |
$420 |
$21,000 |
15,120 |
|
Cut and blow dry |
$1,000 |
$15,000 |
$10,000 |
|
Total fixed costs |
2,620 |
$60,000 |
$39,820 |
|
Profit |
30,000 |
||
|
9,820 |
Compute the breakeven point in units based on the weighted-average contribution margin for the sales mix.
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