Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9. Mohammed Al Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the

image text in transcribed
9. Mohammed Al Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut Other costs are as follows. Advertising $400 per month Rent $1,800 per month Barber supplies $0.60 per haircut Magazines $50 per month Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Draw a use case diagram for Worlds Trend Catalog Division.

Answered: 1 week ago