Question

the whole problem wouldnt fit in frame so i posted 2 pictures please help!

Kimmel, Accounting, 6e Assignment Gradebook ORION Downloadable Textbook Exercise 19-2 In the month of June, Jose Hebert's Beauty Salon gave 3.000 haircuts, shampoos, and permanents at an average price of $30. During the month, fed costs were $16,900 and variable costs were 75% of sales Determine the contribution margin in dollars, per unit and as a ratio (Round contribution margin per unit and contribution margin ratio to 2 decimal places.. 5.25 & 10.50.) Contribution margin Contribution margin perunt Contribution margin ratio Using the contribution margin technique, compute the break even point in dollars and in units. ( und answers to decimal 1,2250 Break-even point treak even point Compute the margin of safety in dollars and as a ratio. (Round answers to decimal places 1.225.) I 2000201 A ved s sis to sech

Answer 1

Determine the contribution Margin 1 Contribution Margin ($ Contribution Margin per unit ($)(Revenue- Variable Cost)/Units or No's Contribution Margin Ratio (%) -Revenue - Variable Cost - 114000-85500 28500 (114000-85500)/3800 (30-22.5)/30*100 7.50 = Average Sales Price - Variable Cost)/Average Sales Price*100 25% Using Contribution Margin, Compute Break Even point in dollors and in units Break Even Point ($) Fixed Cost/Contribution Margin)*Sales -Fixed Cost/Contribution Margin per unit - 16900/28500*114000 - 16900/7.5 67,600 Break Even Point (Units) 2,253 Compute the Margin of Safety in dollors and in ratio 3 Margin of Safety() Margin of Safety Ratio (%) - ( Current Level Sales - Break Even Point) - (Current Level Sales - Break Even Point)/Current Level Sales*100 46400 -114000-67600 =(114000-67600)/114000*100 41%