Answered step by step
Verified Expert Solution
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.
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 monthStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started