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E6-2
In the month of June, Jose Heberts Beauty Salon gave 4,000 haircuts, shampoos,
and permanents at an average price of $30. During the month, fi xed costs were $16,800
and variable costs were 75% of sales.
Instructions
(a) Determine the contribution margin in dollars, per unit and as a ratio.
(b) Using the contribution margin technique, compute the break-even point in dollars and
in units.
(c) Compute the margin of safety in dollars and as a ratio.
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