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raketka [301]
3 years ago
9

In the month of March, Ivanhoe Salon services 550 clients at an average price of $150. During the month, fixed costs were $26,88

0 and variable costs were 60% of sales. (a) Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars $ 60 Contribution margin per unit $ 180 Contribution margin ratio %
Business
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

Explanation:

Variable cost = 60% x $150 = $90

a) Total contribution margin in dollars = ($150 - $90) x 550 = $33,000

b) Unit contribution margin = 150 - 90 = $60

c) Contribution margin ratio = 60/150 = 40%

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