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# Contribution Margin & Margin of Safety

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In the month of June, Paula's Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of \$37. During the month, fixed costs were \$21,312 and variable costs were 76% of sales.

Determine the contribution margin in dollars, per unit, and as a ratio. (Round contribution margin per unit to 2 decimal places, e.g. 10.50, and the other answers to 0 decimal places, e.g. 125.)
Contribution margin in dollars \$
Contribution margin per unit \$
Contribution margin ratio %

Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 125.)
Break-even point in dollars
Break-even point in units

Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.)
Margin of safety in dollars \$
Margin of safety ratio %