Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Sandhill Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,490 per month.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Current Attempt in Progress Sandhill Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,490 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $6.85 per haircut. Other costs are as follows. Advertising $250 per month Rent $970 per month Barber supplies $0.50 per haircut Utilities $200 per month plus $0.15 per haircut Magazines $15 per month Sandhill currently charges $15 per haircut. Determine the variable costs pel haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, eg. 2.25.) Total variable cost per haircut $ Total fixed $ (b). Compute the break-even point in units and dollars. Break-even point haircuts Break even sales $ Determine net income, assuming 1,530 haircuts are given in a month. Net income /(Loss) $

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions