Question: Marj Plimpton is the owner of a hairdressing salon
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. Round your intermediate and per unit computations to the nearest cent.