In the month of June, Angela's Beauty Salon gave 3,500 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.

Instructions:

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

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

(c) Compute the margin of safety in dollars and as a ratio.