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E5-10 Style Salon

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E5-10 In the month of March, Style Salon services 560 clients at an average price of $120.
During the month, fixed costs were $21,024 and variable costs were 60% of sales.

(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.

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