Unit variable costs $ 280 Total fixed costs $ 54,000 Units sold 600
Instructions 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.