Managerial Accounting: E5-6 In the month of June, Angela's Beauty Salon

Managerial Accounting
E5-6
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.
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