Compute the margin of safety in dollars and as a ratio

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Reference no: EM131914875

Problem

In the month of June, Jose Hebert's Beauty Salon gave 4, 100 haircuts, shampoos, and permanents at an average price of $ 40. During the month, fixed costs were $17,000 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.

Reference no: EM131914875

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