Determining the Contribution Margin

Determining the Contribution Margin?

In the month of March, New Day Spa services 589 clients at an average price of $260. During the month, fixed costs were $54,990 and variable costs were 50% of sales.

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

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.

Break-even point in dollars $
Break-even point in units