Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fernando Chavez owns the FC Barber Shop, which is a one-man shop (owned by Fernando and he is the only employee). With the following

image text in transcribedimage text in transcribed

Fernando Chavez owns the FC Barber Shop, which is a one-man shop (owned by Fernando and he is the only employee). With the following information for FC Barber Shop's August operations, calculate the (A) break-even point in dollars and (B) break-even point in units. Break-Even Point Transactions Cost Information Advertising Cost $100 per month Rent Barber supplies Utilities Wages Price of Haircut Number of Haircut Provided $1,000 per month $1.00 per haircut $150 per month plus $0.50 per haircut $500 per month plus $6.00 per haircut $30 per haircut 150 haircuts Round your dollar amount to 2 decimal places. If your answer is $54.4444444, that means you need to make sales of at least $54.45 although rounding the amount to 2 decimal places would be $54.44 because making sales of $54.44 will not result in a break-even point. Round your units to the whole number. If your answer is 54.44444 units, that means you still need to produce 55 units because you cannot produce 54.44 units and producing 54.44 units will not result in a break-even point. (A) Break-Even Point in Dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Recommended Textbook for

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

9780077506902, 78025540, 77506901, 978-0078025549

Students also viewed these Accounting questions