In the month of March, Oriole Salon serviced 630 clients at an average price of \( \$ 200 \). During the month, fixed costs were \( \$ 28,116 \) and variable costs were \( 67 \% \) of sales. (a) Determine the total contribution margin in dollars, the unit contribution margin, and the contribution margin ratio. Contribution margin in dollars Contribution margin per unit Contribution margin ratio

First, let's calculate the total sales for Oriole Salon. With 630 clients and an average price of \( \$ 200 \), total sales equal \( 630 \times 200 = \$ 126,000 \). Next, we find the variable costs. Since variable costs are \( 67\% \) of sales, we have: \[ \text{Variable Costs} = 0.67 \times 126,000 = \$ 84,420. \] Now, we can calculate the total contribution margin: \[ \text{Total Contribution Margin} = \text{Total Sales} - \text{Variable Costs} = 126,000 - 84,420 = \$ 41,580. \] For the unit contribution margin, we first need to find the variable cost per client: \[ \text{Variable Cost per Client} = \frac{84,420}{630} \approx \$ 134.76. \] Now we can find the unit contribution margin: \[ \text{Unit Contribution Margin} = \text{Price} - \text{Variable Cost per Client} = 200 - 134.76 \approx \$ 65.24. \] Lastly, the contribution margin ratio can be calculated as: \[ \text{Contribution Margin Ratio} = \frac{\text{Total Contribution Margin}}{\text{Total Sales}} = \frac{41,580}{126,000} \approx 0.33 \text{ or } 33\%. \] So the results are: - Contribution margin in dollars: \( \$ 41,580 \) - Contribution margin per unit: \( \$ 65.24 \) - Contribution margin ratio: \( 33\% \)