ACC 560 MART Extraordinary Success/acc560mart.com ACC 560 MART Extraordinary Success/acc560mart.com | Page 27

A. Compute the unit contribution margin.
B. Prepare a CVP income statement that shows both total and per
unit amounts.
C. Compute Billings' break-even point in units.
D. Prepare a CVP income statement for the break-even point that
shows both total and per unit amounts.
E6-2
In the month of June, Jose Hebert's Beauty Salon gave 4,000
haircuts, shampoos, and permanents at an average price of $30.
During the month, fixed 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.
E6-7
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It
performs primarily two lines of service: oil changes and brake repair.
Oil change–related services represent 70% of its sales and provide a
contribution margin ratio of 20%. Brake repair represents 30% of its