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.