In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales.
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
| Contribution margin | $ | ||
| Contribution margin per unit | $ | ||
| Contribution margin ratio | | % |
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
| Break-even sales | $ | ||
| Break-even sales | | units |
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