Question
Please help me find the answer for D Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate
Please help me find the answer for D
Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,570 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $9.05 per haircut. Other costs are as follows.
Advertising | $270 | per month | |
Rent | $1,060 | per month | |
Barber supplies | $0.45 | per haircut | |
Utilities | $195 | per month plus $0.10 per haircut | |
Magazines | $15 | per month |
Sheridan currently charges $16 per haircut.
(a)
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 | $ 9.6 | |
---|---|---|
Total fixed | $ 8320 |
(b)
Correct answer iconYour answer is correct.
Compute the break-even point in units and dollars.
Break-even point | 1300 | haircuts | |
Break even sales | 20800 |
(d)
Incorrect answer iconYour answer is incorrect.
Determine net income, assuming 1,590 haircuts are given in a month.
Net income / (Loss) |
|
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