In the month of June Jose Herbert’s Beauty Salon gave 4000 haircuts shampoos and permanents at an average price of $30. During the month fixed costs were $16800 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.
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