Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Matt Reiss owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,100 per month. One of the barbers
Matt Reiss owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,100 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 $5.70 per haircut. Other costs are as follows. Advertising $290 per month Rent $970 per month Barber supplies $0.30 per haircut Utilities $180 per month plus $0.30 per haircut Magazines $30 per month Matt currently charges $11.50 per haircut. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Variable costs $ Total fixed costs $ Compute the break-even point in units and dollars. (Round answers to 0 decimal places, ie. 1,275.) Breakeven point in units haircuts Breakeven point in dollars $ Determine net income, assuming 2,330 haircuts are given in a month. $
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