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Can someone help me solve these two problems on Chapter 9? The chapter is about CVP in cost accounting. XXX = 560 Normal No Spacing
Can someone help me solve these two problems on Chapter 9? The chapter is about CVP in cost accounting.
XXX = 560
Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph... Emphasi 1. Stanley Clipper, now retired, owns the Campus Barber Shop. He employs five (5) barbers and pays| each a base rate of $500 per month. One of the barbers serves as the manager and receives an extra $300 per month. In addition to the base rate, each barber also receives a commission of $3 per haircut. A barber can do as many as 20 haircuts a day, but the average is 14 haircuts per day. The Campus Barber Shop is open 24 days a month. You can safely ignore income taxes. Other costs are incurred as follows Advertising Barber Supplies Utilities Magazines Cleaning Supplies SXXX per month S400 per month S0.90 per haircut $175 per month +$ 0.35 per haircut S 25 per month $0.15 per haircut Stanley currently charges S8 per haircut. (a) Compute the break-even point in (1) number of haircuts, (2) total sales dollars.. (b) In March, 1,400 haircuts were given. Compute the operating profits for the month (c) Stanley wants a $2,160 operating profit in April. Compute the number of haircuts that must be given in order to achieve this goal (d) If 1,500 haircuts are given in April, compute the selling price that would have to be charged in order to have $2,160 in operating profits 2. You have been provided with the following information regarding the ALG Mfg Company: Sales price Variable manufacturing cost per unit Variable marketing cost per unit Fixed manufacturing costs Fixed administrative costs $ 25 180 40,000 This information is based on forecasted sales of 25,000 units (a) What are the expected operating profits for the upcoming year? (b) What is the break-even point in units? (c) What is the break-even point in dollars? (d) If $80,000 of operating profits is desired, how many units must be sold? (e) How much in sales dollars is required to generate an operating profit of $75,000Step by Step Solution
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