Question - In the month of March, Style Salon services 560 clients at an average price of $120 per client. During the month fixed costs were $21,024 and variable costs were $72 per client.
Instructions
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
(b) Compute the break-even point in dollars and in units.
(c) Compute the margin of safety in dollars and as a ratio.