Compute the margin of safety in dollars and as a ratio

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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.

Reference no: EM132280341

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