Determine the contribution margin in dollars per unit and

Reference no: EM13580971

1) Burns Company incurred the following costs during the year: direct materials $23 per unit; direct labor $14 per unit; variable manufacturing overhead $17 per unit; variable selling and administrative costs $9 per unit; fixed manufacturing overhead $125,000; and fixed selling and administrative costs $11,000. Burns produced 15,625 units and sold 6000 units.

Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing.

		Manufacturing cost
(a)	Absorption Costing	$
(b)	Variable Costing	$

2) In the month of June, Jose Hebert's Beauty Salon gave 3,210 haircuts, shampoos, and permanents at an average price of $39. During the month, fixed costs were $16,540 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, e.g. $5.25 & 10.50%.)

Contribution margin	$
Contribution margin per unit	$
Contribution margin ratio		%

Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,225.)

Break-even point		$
Break-even point			units

Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 1,225 & 25%.)

Margin of safety		$
Margin of safety ratio			%

Reference no: EM13580971

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