Question:
In the month of March, Style Salon services 550 clients at an average price of $140. During the month, fixed costs were $22,344 and variable costs were 65% of sales.
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
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Contribution margin
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$
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Contribution margin per unit
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$ 
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Contribution margin ratio
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%
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(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
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Break-even sales
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$
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Break-even sales
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units
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