In the month of March, New Day Spa services 570 clients at an average price of $120. During the month, fixed costs were $21,000 and variable costs were 65% of sales.
Compute contribution margin and break-even point.
(SO 5, 6)
Instructions
(a)Determine the contribution margin in dollars, per unit, and as a ratio.
(b)Using the contribution margin technique, compute the break-even point in dollars and in units.