(Answered) Question - calculate the contribution margin and break-even

Accounting

Question - Calculate the contribution margin and break-even point

In the month of June, New Day Spa served 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales.

Instructions

(a) Determine the contribution margin in dollars, per unit, and as a ratio.

(b) Using the contribution margin technique, calculate the break-even point in dollars and in units.

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