1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
avanturin [10]
2 years ago
10

In the month of March, Sandhill Salon services 630 clients at an average price of $120. During the month, fixed costs were $26,1

60 and variable costs were 50% of sales. Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars $ Contribution margin per unit $ Contribution margin ratio % eTextbook and Media Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales $ Break-even sales
Business
1 answer:
vichka [17]2 years ago
6 0

Answer:

<em>Part 1.  total contribution margin in dollars</em>

Total Contribution Margin  = $37,800

<em>Part 2. per unit contribution margin</em>

contribution margin per unit of sell  = $ 60

<em>Part 3. contribution margin ratio</em>

contribution margin ratio  = 50 %

<em>Part 4. break-even point in dollars</em>

break-even point in dollars  = $ 52,320

<em>Part 5. break-even point in units</em>

break-even point in units  = 436 clients

Explanation:

<em>Part 1.  total contribution margin in dollars</em>

contribution margin per unit of sell = Sales Price × 50%

                                                             = $120 × 50%

                                                             = $ 60

Total Contribution Margin = Number of Clients × Contribution Margin per unit

                                              = 630 × $60

                                              = $37,800

<em>Part 2. per unit contribution margin</em>

contribution margin per unit of sell = Sales Price × 50%

                                                             = $120 × 50%

                                                             = $ 60

<em>Part 3. contribution margin ratio</em>

contribution margin ratio = Contribution / Sales

                                            = $ 60/ $ 120

                                            = 50 %

<em>Part 4. break-even point in dollars</em>

break-even point in dollars = Fixed Costs / contribution margin ratio

                                               =  $26,160 / 0.50

                                               = $ 52,320

<em>Part 5. break-even point in units</em>

break-even point in units = Fixed Costs / contribution per unit

                                            = $26,160 / $60

                                            = 436 clients

You might be interested in
Cost of goods sold for a merchandising company, direct materials and commissions are all examples of
katovenus [111]

For a merchandising company, the cost of goods sold, direct materials, and commissions are <u>variable costs</u>.

<h3>What is a variable cost?</h3>

A variable cost is the cost element that remains constant per unit while the total changes.  Other examples of variable costs include direct labor, variable selling and administrative expenses, including commissions and shipping costs.

Thus, for a merchandising company, the cost of goods sold, direct materials, and commissions are all examples of <u>variable costs</u>.

Learn more about variable costs here: brainly.com/question/5965421

8 0
2 years ago
Which 3 of these areas does the Client Needs Assessment tool focus on to help gather the information needed to select the right
Leto [7]

The 3 areas the Client Needs Assessment tool focuses on to help gather the information needed to select the right QuickBooks Online subscription for a client include <u>Who is the client?</u>

The other areas the tool focuses on to help gather information needed include the following:

  • What service does the Client need?
  • When does the client need their work completed?
  • Also, the Client Needs Assessment tool focuses on the area of "How will the client work be completed?"

Hence, in this case, it is concluded that the <u>Client Needs Assessment</u> tool focuses on the areas of "what, when, who, and how" to gather the right needed to select the right QuickBooks Online subscription for a client.

Learn more here: brainly.com/question/13136031

8 0
2 years ago
What results when consumers become apprehensive about their job security and their financial security?
Elis [28]

<u>After consumption spending</u><u> results when consumers become apprehensive about their job security and their </u><u>financial security.</u>

What happens to the price level as a result of an increase in spending ?

  • As the average price level falls¸ consumers have more financial wealth and decide to increase spending.
  • As spending increases, there will be upward pressure on the price of inputs including wages.
  • As the marginal cost of production rises, businesses start to increase prices as they attempt to produce more.

What happens to the level of unemployment because of the increased spending?

  • The higher spending causes businesses to raise prices. The economy returns to full employment at a higher price level.
  • If the economy is left alone, the increased unemployment will eventually cause wages to fall and the economy will return to full employment at a lower price level.

What are the effects of unemployment essay?

  • Effects of unemployment include over exploitation of available labor, reduced rate of economic growth, reduced human capacity, loss of human resources and increase in poverty levels .
  • One positive effect of unemployment is the availability of adequate labor at reduced market prices.

Learn more about The higher spending

brainly.com/question/15511088

#SPJ4

5 0
1 year ago
Which of the following will shift the supply curve to the left?
seropon [69]

Answer:

The correct answer is option a.

Explanation:

An increase in the price of inputs of production will cause an increase in the cost of production. The firm will now be able to produce less at the same cost.  

As a result, the supply of the commodity will decline. this causes the supply curve to shift to the left further causing an increase in the price of the product.

4 0
3 years ago
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORA
alukav5142 [94]

Answer:

no

Explanation:

hi my name is skfyavwjegvjw

7 0
3 years ago
Other questions:
  • What is a factor that increases the volatility of demand in industrial markets? Multiple Choice Professional buyers in the indus
    10·1 answer
  • The constraints of economic growth in south africa
    11·1 answer
  • When companies adopt the strategy-making and strategy execution process it requires they start by
    12·1 answer
  • Which of the following correctly defines the consumer​ market? A. ​Manufacturers, resellers, and consumers B. Consumers and the
    7·1 answer
  • Suppose you have the following values for a short-run production process: Q = 20, VC = 100, FC = 600 and MC = 40. Given this, we
    8·1 answer
  • On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:
    6·1 answer
  • An oil-producing country can sell 7 million barrels of oil a day at a price of $120 per barrel. If each $1 price increase will r
    14·1 answer
  • The activity that involves creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
    15·1 answer
  • Explain the following factors that influence the choice of funding: risk
    10·1 answer
  • Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products ar
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!