In the month of March, Style 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.
(a) Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin
$ Contribution margin per unit
$ Contribution margin ratio
%
(b) Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales
$ Break-even sales
units