E6.2 (LO 1), AP In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $30 each. During the month, fixed costs were $16,800 and variable costs were 75% of sales. Instructions Determine the contribution margin in dollars, per unit and as a ratio. Using the contribution margin technique, compute the break-even point in sales dollars and in sales units. Compute the margin of safety in dollars and as a ratio.
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E6.2 (LO 1), AP In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $30 each. During the month, fixed costs were $16,800 and variable costs were 75% of sales.
Instructions
Determine the contribution margin in dollars, per unit and as a ratio.
Using the contribution margin technique, compute the break-even point in sales dollars and in sales units.
Compute the margin of safety in dollars and as a ratio.
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- In the month of August, Beauty Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% 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? Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales? (in dollars) Break-even sales? (in units)In the month of June, Sunland Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and hair colorings at an average price of $50. During the month, fixed costs were $16,000 and variable costs were 75% of sales. Determine the contribution margin in dollars, per unit and as ratio Using the contribution margin technique, compute the break-even point in dollars and in units. Compute the margin of safety in dollars and as a ratio.Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $20. The sharpeners are sold for $30 each. Fixed operating expenses amount to $40,000. a. Determine the break-even point in units and sales dollars. b-1. Determine the sales volume in units and dollars that is required to attain a profit of $12,000. b-2. Prepare an income statement using the contribution margin format to verify your answer. c. Determine the margin of safety between sales required to attain a profit of $12,000 and break-even sales.
- Last month, Laredo Company sold 510 units for $55 each. During the month, fixed costs were $5,478 and variable costs were $22 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution margin and contribution margin ratio. Unit Contribution Margin Contribution Margin Ratio %Tan-O-Rama is a local tanning salon. Its regression output is as follows Coefficients 4,601.18 2.84 Suppose that the company charges $9.20 per tanning session. Required: 1. Calculate the unit contribution margin. 2. Calculate contribution margin ratio. 3. Calculate the total contribution margin if the shop books 1,350 tanning sessions this month. Intercept X Variable 1Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,630.34 X Variable 1 2.33 Suppose that the company charges $7.20 per tanning session. Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,400 tanning sessions this month.
- Fast as Lightning is an oil change service drive-through that charges each customer $24.00 for an oil and filter change service. Fast as Lightning has found that it costs its business $15.00 per oil and filter change. Monthly fixed costs are $44,000; current sales are 8,000 services. a. Compute the breakeven sales in units.b. Compute the margin of safety in units and sales dollars.c. Compute the margin of safety as a percentage.d. Compute the operating leverage factor.e. Compute the percentage of operating income decline if sales fall by 18%.Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done PrintTan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients 4,591,46 2.42 Suppose that the company charges $6.20 per tanning session. Required: 1. Calculate the unit contribution margin. 2. Calculate contribution margin ratio. 3. Calculate the total contribution margin if the shop books 1,300 tanning sessions this month. Intercept X Variable 11 Complete this question by entering your answers in the tabs below. Unit CM CM Ratio Total CM Calculate the unit contribution margin. Note: Round your final answer to 2 decimal places. Unit Contribution Margin
- 6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)Last month Annie's Homemade total sales and variable costs for 6-ounce servings were $18,000 and $4,500, respectively. Its total sales and variable costs for 8-ounce servings were $7,000 and $1,750, respectively. Its total fixed costs for the month were $11,000. Required: 1. What was last month's overall contribution margin ratio? 2. Using last month's data, what is the company's overall break-even point in dollar sales? Note: Round up to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What was last month's overall contribution margin ratio? The overall contribution margin ratio was %Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 96,000 29,800 $ 66,200 Makeover $ 48,000 6,200 $ 41,800 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. % Required 1 Required 2 Required 3 What is the overall contribution margin (CM) ratio for the company? Overall CM ratio