Discuss the clients at an average price

Question

In the month of March, Picard Spa services 500 clients at an average price of $120. During the month, fixed costs were $21,600 and variable costs were 60% of sales.

Instructions

1. Determine the contribution margin in dollars, per unit, and as a ratio.
2. Using the contribution margin technique, compute the break-even point in dollars and in units.