Question
Matt Reiss owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,070 per month. One of the barbers
Matt Reiss owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,070 per month. One of the barbers serves as the manager and receives an extra $504 per month. In addition to the base rate, each barber also receives a commission of $5.60 per haircut. Other costs are as follows. Advertising $203 per month Rent $891 per month Barber supplies $0.30 per haircut Utilities $171 per month plus $0.30 per haircut Magazines $26 per month Matt currently charges $10.33 per haircut. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 10.50. Round fixed costs to 0 decimal places, e.g. 125.) Variable cost = Total fixed Cost = Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 125.) Break even point in units (# of haircuts) = Break even point in dollars = Determine net income, assuming 1,900 haircuts are given in a month. Net Income =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started