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Maggie May owns May We Massage You Massage Parlor. She employs of $1,200 per month. One of the masseuses is a manager and receives an
Maggie May owns "May We Massage You" Massage Parlor. She employs of $1,200 per month. One of the masseuses is a manager and receives an extra $800 rate, each masseuse also receives a commission of $10.80 per massage. Other costs associated with the massage parlor are as follows. 8 masseuses and pays them each a base rate per month. In addition to the base Advertising Rent Massage Oils Utilities Magazines $400 per month $1000 per month $1.35 per massage $200 per month plus $1.20 per massage $30 per month Maggie charges $100 per massage. Instructions (Worth 10 points) (a) Determine the variable cost per massage and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 1,280 massages are given in a month. (d) Determine the amount of sales needed to net 50,000 income. (e) Determine the Margin of Safety in dollars and percent if the expected sales is $20,000
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