A few days ago
New Momma

Contribution Margin in dollars and in units???

This is the information given….

In the month of June, Angela’s Beauty Salon gave 3,230 haircuts, shampoos, and permanents at an average price of $39. During the month, fixed costs were $16,570 and variable costs were 80% of sales.

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A few days ago
Love to dance

Favorite Answer

Definition: What is Contribution Margin?

Contribution margin is sales revenue less variable costs. It is the amount available to pay for fixed costs and provide any profit after variable costs have been paid.

3230 X $39 =$125970 * .20 = $25194 (thats your CM in $)

25194/39 = 646 (thats your CM in UNITS in other words haircuts/shampoos/perms)

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