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Exercise 6-2 In the month of June, Paula?s Bea...




Exercise 6-2 In the month of June, Paula?s Beauty Salon gave 3,5000 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. (a) Determine the contribution margin in dollars, per unit and as a ratio. (b) Using the contribution margin technique, compute the break-even point dollars and in units. (c)Compute the margin of safety in dollars and as a ratio. Exercise 6-9 Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs of Pairs of Range- Shoes Gloves Finder Unit sales price $100 $30 $250 Unit variable costs 60 10 200 Unit contribution margin $ 40 $20 $ 50 Sales mix 40% 50% 10% (a) Compute the breakeven point in units for the company. (b) Determine the number of units to be sold at the break-even point for each product line. (c) Verify that the mix of sales units determined in (b) will generate a zero net income.


Paper#6568 | Written in 18-Jul-2015

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