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Compute breakeven point in units based on weighted-average

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Reference no: EM13890007

Marj Plimpton is the owner of a hairdressing salon in New York City. Her salon provides three basic services: shampoo and set, permanent, and cut and blow dry. Its operating results from the past quarter follow.

Type of service

number of Customers

Total sales

Contribution Margin in Dollars

Shampoo and set

1,200

$24,000

$14,700

Permanent

420

21,000

15,120

Cut and blow dry

1,000

15,000

10,000

 

2,620

$60,000

$39,820

Total fixed costs

40,000

Profit (loss)

$    (180)

Compute the breakeven point in units based on the weighted-average contribution margin for the sales mix.

Reference no: EM13890007

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