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 sales and provides a 40 % contribution margin ratio . The company ' s fixed costs are $ 15,600,000 ( that is , $ 78,000 per service outlet ).
Instructions
A . Calculate the dollar amount of each type of service that the company must provide in order