Question

Exercise 18-10 100 . During the month, fixed costs were $14,016 and variable costs In the month of March, Style Salon services 630 clients at an average price of were 68 % of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.) Contribution margin Contribution margin per unit % Contribution margin ratio LINK TO TEXT VIDEO: APPLIED SKILLS Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,225.) Break-even sales Break-even sales units Open Show Work Click if you would like to Show Work for this question:

with explanations please

Answer 1

1a
Service revenue	63000	=630*100
Less: Variable costs	42840	=63000*68%
Contribution margin	20160
1b
Service revenue per unit	100
Less: Variable cost per unit	68	=100*68%
Contribution margin per unit	32
1c
Contribution margin per unit	32
Divide by Service revenue per unit	100
Contribution margin ratio	32%
2a
Fixed costs	14016
Divide by Contribution margin ratio	32%
Break-even sales	43800
2b
Fixed costs	14016
Divide by Contribution margin per unit	32
Break-even sales	438	units