Question
In: Accounting
In the month of June, Jose Hebert’s Beauty Salon gave 4,125 haircuts, shampoos, and permanents at...
In the month of June, Jose Hebert’s Beauty Salon gave 4,125 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $16,500 and variable costs were 75% of sales.
| Your answer is incorrect. Try again. | |
Compute the margin of safety in dollars and as a
ratio.
| Margin of safety | $ | 41259 | |
| Margin of safety ratio | 25% |
Solutions
Expert Solution
Solution
| Margin of safety sales | $ 99,000.00 |
| Margin of safety ratio | 60.00% |
Working no 1
| A | Actual Sales | $ 165,000.00 |
| B | Breakeven sales(see working 2) | $ 66,000.00 |
| C=A-B | Margin of safety sales | $ 99,000.00 |
| D=C/A | Margin of safety ratio | 60.00% |
.Working no 2
| A | Sale Price per unit | $ 40.00 |
| B | Variable Cost per Unit (40 x 75%) | $ 30.00 |
| C=A - B | Unit Contribution | $ 10.00 |
| D | Total Fixed cost | $ 16,500.00 |
| E=D/C | Breakeven point in units | 1,650 |
| F= E x A | Breakeven in sales dollars | 66,000.00 |
ekkarill92 answered 1 year agoRelated Solutions
In the month of June, Jose Hebert’s Beauty Salon gave 4,400 haircuts, shampoos, and permanents at an...
In the month of June, Jose Hebert’s Beauty Salon
gave 4,400 haircuts, shampoos, and permanents at an
average price of $ 40. During the month, fixed costs were $ 16,800
and variable costs were 75% of sales.
Determine the contribution margin in dollars, per unit and as a
ratio. (Round contribution margin per unit and
contribution margin ratio to 2 decimal places, e.g. 5.25 &
10.50.)
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
eTextbook and Media...
In the month of June, Jose Hebert’s Beauty Salon gave 3,500 haircuts, shampoos, and permanents at...
In the month of June, Jose Hebert’s Beauty Salon gave 3,500
haircuts, shampoos, and permanents at an average price of $30.
During the month, fixed costs were $16,500 and variable costs were
75% of sales.
Determine the contribution margin in dollars, per unit and as a
ratio. (Round contribution margin per unit and
contribution margin ratio to 2 decimal places, e.g. 5.25 &
10.50.)
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
Using the contribution margin...
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February
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May
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March
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June
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