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Question - In the month of June, Jose Hebert's Beauty Salon gave 3,900 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,600 and variable costs were 75% of sales.
Determine the contribution margin in dollars, per unit and as a ratio.
Using the contribution margin technique, compute the break-even point in dollars and in units.
Compute the margin of safety in dollars and as a ratio.
Discuss the significance of the accounting concept, your solution, and how your arrived at your solution.
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