contestada

In the month of March, Sandhill Salon services 630 clients at an average price of $120. During the month, fixed costs were $26,160 and variable costs were 50% of sales. Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars $ Contribution margin per unit $ Contribution margin ratio % eTextbook and Media Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales $ Break-even sales

Respuesta :

Zviko

Answer:

Part 1.  total contribution margin in dollars

Total Contribution Margin  = $37,800

Part 2. per unit contribution margin

contribution margin per unit of sell  = $ 60

Part 3. contribution margin ratio

contribution margin ratio  = 50 %

Part 4. break-even point in dollars

break-even point in dollars  = $ 52,320

Part 5. break-even point in units

break-even point in units  = 436 clients

Explanation:

Part 1.  total contribution margin in dollars

contribution margin per unit of sell = Sales Price × 50%

                                                             = $120 × 50%

                                                             = $ 60

Total Contribution Margin = Number of Clients × Contribution Margin per unit

                                              = 630 × $60

                                              = $37,800

Part 2. per unit contribution margin

contribution margin per unit of sell = Sales Price × 50%

                                                             = $120 × 50%

                                                             = $ 60

Part 3. contribution margin ratio

contribution margin ratio = Contribution / Sales

                                            = $ 60/ $ 120

                                            = 50 %

Part 4. break-even point in dollars

break-even point in dollars = Fixed Costs / contribution margin ratio

                                               =  $26,160 / 0.50

                                               = $ 52,320

Part 5. break-even point in units

break-even point in units = Fixed Costs / contribution per unit

                                            = $26,160 / $60

                                            = 436 clients

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE

Otras preguntas