Can you please help me with problem number P4-1B

Problems: Set B 1 PROBLEMS: SET B P5-1B The Sasoon Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,000 per month. The other barbers are paid $1,500 per month. costs, compute break-even In addition, each barber is paid a commission of $3 per haircut. Other monthly costs are point, prepare a CVP graph, store rent $700 plus 60 cents per haircut, depreciation on equipment $400, barber supplies and determine net income 40 cents per haircut, utilities $300, and advertising $100. The price of a haircut is $10. Instructions (a) Determine the variable costs 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 incre (LO 1, 2, 3, 4), AN (a) VC $4 ments of 300 haircuts on the horizontal axis and $3,000 increments on the vertical axis. (d) Determi ne the net income, assuming 1,800 haircuts are given in a month te Company bottles and distributes Frute Ade, a fruit drink. The beverage is Prepare a CVP income statenment, compute break even point, contribution margin rario, margin of safety arge customers 70 cents per bot- sold for 50 cents per 16-ounce bottle to retailers, who ch tle. For the year 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor $2,500,000 Selling expenses-variable $ 80,000 ratio, and sales for target net ing expenses-fixed Administrative expenses- 250,000 income 360,000 450,000 (LO 3, 4, 5), AN varia 40,000 variable Manufacturing overhead- 270,000 Administrative expenses- 150,000 (a) Prepare a CVP income statement for 2017 based on management's estimates. (Show column for total amounts only.) (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the (d) Determine the sales dollars required to earn net income of $624,000. (b) (1) 3,000,000 units (c) CM ratio 52% margin of safety ratio. P5-3B Olgivie Company had a bad year in 2016. For the first time in its history, it operated Compute break-evn point at a loss. The company's income statement showed the f 60,000 units of product: sales $1,800,000; total costs and expenses $2,010,000: and net loss action. $210,000. Costs and expenses consisted of the amounts shown below. t ollowing results from selling nder alternative courses of (LO 3, 4), E Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,350,000930,000 $420,000 125,000 355,000 480,000 180,000 115,000 $2,010,000 $1,170,000 $840,000 Management is considering the following independent alternatives for 2017 1 . Increase unit selling price 25% with no change in costs, expenses, and sales volu 2. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $20,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 Instructions (a) Compute the break-even point in dollars for 2016. Compute the break-even point in dollars under each of the alternative courses of action. (b) Altermative 1, 51,750,000 (Round all ratios to nearest full percent.) Which course of action do you recommend? P5-4B Alma Ortiz is the advertising manager for Costless Shoe Store. She is currently work. Compute break-even point on a major promotional campaign. Her ideas include the installation of a new lighting and margin of safety ratio, system and increased display space that will add $18,000 in fixed costs to the $216,000 cur and prepare a CVP incone rently spent. In addition, Alina is proposing that a l0%price decrease (from, $30 to $27) will sta nent volume from 20,000 to 24,000 units. Variable costs will remain after changes im business at $12 per pair of shocs. Management is impressed with Alma's ideas but concerned about the effects that these changes will have on the break even point and the margin of safety (LO 3, 4,5),E Problems: Set B 1 PROBLEMS: SET B P5-1B The Sasoon Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,000 per month. The other barbers are paid $1,500 per month. costs, compute break-even In addition, each barber is paid a commission of $3 per haircut. Other monthly costs are point, prepare a CVP graph, store rent $700 plus 60 cents per haircut, depreciation on equipment $400, barber supplies and determine net income 40 cents per haircut, utilities $300, and advertising $100. The price of a haircut is $10. Instructions (a) Determine the variable costs 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 incre (LO 1, 2, 3, 4), AN (a) VC $4 ments of 300 haircuts on the horizontal axis and $3,000 increments on the vertical axis. (d) Determi ne the net income, assuming 1,800 haircuts are given in a month te Company bottles and distributes Frute Ade, a fruit drink. The beverage is Prepare a CVP income statenment, compute break even point, contribution margin rario, margin of safety arge customers 70 cents per bot- sold for 50 cents per 16-ounce bottle to retailers, who ch tle. For the year 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor $2,500,000 Selling expenses-variable $ 80,000 ratio, and sales for target net ing expenses-fixed Administrative expenses- 250,000 income 360,000 450,000 (LO 3, 4, 5), AN varia 40,000 variable Manufacturing overhead- 270,000 Administrative expenses- 150,000 (a) Prepare a CVP income statement for 2017 based on management's estimates. (Show column for total amounts only.) (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the (d) Determine the sales dollars required to earn net income of $624,000. (b) (1) 3,000,000 units (c) CM ratio 52% margin of safety ratio. P5-3B Olgivie Company had a bad year in 2016. For the first time in its history, it operated Compute break-evn point at a loss. The company's income statement showed the f 60,000 units of product: sales $1,800,000; total costs and expenses $2,010,000: and net loss action. $210,000. Costs and expenses consisted of the amounts shown below. t ollowing results from selling nder alternative courses of (LO 3, 4), E Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,350,000930,000 $420,000 125,000 355,000 480,000 180,000 115,000 $2,010,000 $1,170,000 $840,000 Management is considering the following independent alternatives for 2017 1 . Increase unit selling price 25% with no change in costs, expenses, and sales volu 2. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $20,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 Instructions (a) Compute the break-even point in dollars for 2016. Compute the break-even point in dollars under each of the alternative courses of action. (b) Altermative 1, 51,750,000 (Round all ratios to nearest full percent.) Which course of action do you recommend? P5-4B Alma Ortiz is the advertising manager for Costless Shoe Store. She is currently work. Compute break-even point on a major promotional campaign. Her ideas include the installation of a new lighting and margin of safety ratio, system and increased display space that will add $18,000 in fixed costs to the $216,000 cur and prepare a CVP incone rently spent. In addition, Alina is proposing that a l0%price decrease (from, $30 to $27) will sta nent volume from 20,000 to 24,000 units. Variable costs will remain after changes im business at $12 per pair of shocs. Management is impressed with Alma's ideas but concerned about the effects that these changes will have on the break even point and the margin of safety (LO 3, 4,5),E