Betsy's Nails employs four technicians. One technician, who also serves as the manager, is paid a salary of $3,500 per month. The other technicians are paid $1,800 per month. In addition, each technician is paid a commission of $4 per manicure. Other monthly costs are store rent $900 plus 70 cents per manicure, depreciation on equipment $300, nail supplies 45 cents per manicure, utilities $200, and advertising $200. The price of nails is $20. Instructions: (a) Determine the variable costs per manicure 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 1500 manicures in a month. Use increments of 200 manicures on the horizontal axis and $1,000 increments on the vertical axis. (d) Determine the net income, assuming 1,500 manicures are given in a month. 1 (a) Variable cost (per manicure) Fixed cost (per month) 1 WN 2 2 3 4 13 4 56 5 6 Total Variable Costs (c) CVP graph 15 14 543N DOLLARS 10 9 8 765415N- 200 (d) Net income Net income 7 8 9 10 (b) Break-even sales in units Break-even sales in dollars 11 12 13 14 15 16 17 18 19 20 13 21 12 22 11 23 24 25 26 27 28 S 29 (000) 30 31 32 33 34 35 36 37 38 39 40 Total Fixed Costs 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 400 600 800 1,000 1,200 34 Number of Manicures 35 36 37 38 39 40 Sppy Corporation, a manufacturer of high end coffee cups, had the following data for 201 Sales Sales price Variable co Fixed costs Instructions (a) What is the contribution margin ra (b) What is the break-even point in dolars? 3,000 units $40 per unit $8 per un $30,000 (c) What is the margin of safety in units and dollars? Show all won (4) Contribution Mage Pa 5 beakeven point in dolars 71 " " 10 10 11 F Margin of hatety in units and delan 12 12 113 114 14 15 18 17 19 19 20 21 27 23 24 20 27 20 20 30 115 The manager of Erickson Industries has collected the following monthly expense data for use in Oste analyzing the cost behavior of maintenance costs [(K) Month Total Mainenance Co Total Machine Hours 1 Variable Costs Per Machine Hour July August September Odober 2900 300 3000 400 3000 600 4300 790 3200 600 4500 800 Enckson indust Machine Hours Machine Hours November Total Costs December 10 Less Vananie Costs 10 Determine the fed and venabis cost components using the high-low method " 12 Fund Costs 13 14 15 10 171 30 10 20 21 22 23 20 22 24 24 25 26 27 28 28 29 30