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Angela Beauty 3500

Price: $1.99


In the month of June, Angela’s Beauty Salon gave 3,500 haircuts, shampoos, and
permanents at an average price of $30. During the month, fixed costs were $16,800 and
variable costs were 80% 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

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