ACC 560 MART Motivated Minds/acc560mart.com ACC 560 MART Motivated Minds/acc560mart.com | Page 26

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.