# Managerial Accounting: E26-2 In the month of June, Angelo's Beauty Salon

Managerial Accounting

E6-2

In the month of June, Angelo's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 80% of sales.

Required:

a. Determine the contribution margin in dollars, per unit, and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 10.50, and the other answers to 0 decimal places, e.g. 125.)

b. Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 125.)

c. Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.)

E6-2

In the month of June, Angelo's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 80% of sales.

Required:

a. Determine the contribution margin in dollars, per unit, and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 10.50, and the other answers to 0 decimal places, e.g. 125.)

b. Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 125.)

c. Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.)

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