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.