Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 18-2A a-b,d (Part Level Submission) (Video) Sunland Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of

image text in transcribedimage text in transcribedimage text in transcribed

Problem 18-2A a-b,d (Part Level Submission) (Video) Sunland Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,380 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows Advertising Rent Barber supplies Utilities Magazines $230 per month $990 per month $0.38 per haircut $175 per month plus $0.22 per haircut 25 per month Sunland currently charges $14.10 per haircut. Your answer is 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 Total fixed 6.1 10,240 ( b ) Your answer is correct. Compute the break-even point in units and dollars. Break-even point 1,280 haircuts Break even sales 18,048 (d) Determine net income, assuming 2,390 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

Bucks The Next Step Advanced Medical Coding And Auditing

Authors: Elsevier

1st Edition

0323874118, 978-0323874113

More Books

Students also viewed these Accounting questions