Acc561 Introduction to Management Accounting: E19-2 In the month of June, Angela's Beauty Salon
Acc561 Introduction to Management Accounting
E19-2 In the month of June, Angela'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.
Instructions 1. Determine the contribution margin in dollars, per unit, and as a ratio. 2. Using the contribution margin technique, compute the break-even point in dollars and in units. 3. Margin of safety in dollars and ratio.