Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oriole Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the barbers

image text in transcribed

image text in transcribed

Oriole Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base rate, each barber also receives a commission of $10.70 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $260 per month $1,010 per month $0.50 per haircut $165 per month plus $0.20 per haircut $15 per month Oriole currently charges $19 per haircut. Your answer is partially correct. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut $ 11.40 Total fixed Compute the break-even point in units and dollars. Break-even point haircuts Break even sales $ eTextbook and Media X Your answer is incorrect. 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

Recommended Textbook for

Financial Accounting

Authors: Harrison, Horngren, Thomas

1st Edition

0558823513, 978-0558823511

More Books

Students also viewed these Accounting questions

Question

Will you be able to pay your bills?

Answered: 1 week ago

Question

What is the definition of Beta as used in corporate finance?

Answered: 1 week ago

Question

Define pay ranges. What is the purpose of establishing pay ranges?

Answered: 1 week ago