Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 18-1A Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,310 per month. One of
Problem 18-1A Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.67 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $210 per month $920 per month $0.46 per haircut $180 per month plus $0.38 per haircut $30 per month Vin currently charges $11.51 per haircut. 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 Total fixed Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 1,225.) Break-even point haircuts Break-even points Determine net income, assuming 2,330 haircuts are given in a month. (Round answer to 0 decimal places, e.g. 1,225.) Net income / (Loss)
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