1) Burns Company incurred the following costs during the year: direct materials $23 per unit; direct labor $14 per unit; variable manufacturing overhead $17 per unit; variable selling and administrative costs $9 per unit; fixed manufacturing overhead $125,000; and fixed selling and administrative costs $11,000. Burns produced 15,625 units and sold 6000 units.

Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing.

2) In the month of June, Jose Hebert's Beauty Salon gave 3,210 haircuts, shampoos, and permanents at an average price of $39. During the month, fixed costs were $16,540 and variable costs were 75% of sales.

Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. $5.25 & 10.50%.) Contribution margin $ 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. 1,225.) Break-even point $ Break-even point units

Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 1,225 & 25%.) Margin of safety $ Margin of safety ratio %