Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer a, b, c and d please. P22-1B The All Cuts Barber Shop employs four barbers. One barber, who also serves as the manager, is

Answer a, b, c and d please.

image text in transcribed

P22-1B The All Cuts Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,900 per month. The other barbers are paid S1,900 per month. In addition, each barber is paid a commission of S2 per haircut. Other monthly costs are: store rent $700 plus 60 cents per haircut, depreciation on equipment $500, barber supplies 40 cents per haircut, utilities $300, and advertising S100. The price of a haircut is S10 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) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 increments on the vertical axis. (d) Determine the net income, assuming 1,700 haircuts are given in a month

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Creative And Innovative Auditing

Authors: Jeffrey Ridley

1st Edition

1472474627, 9781472474629

More Books

Students also viewed these Accounting questions