Problems 4,5,6

Jain Company had S150,000 of net income in 20 times 8 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $750,000. Management expects per unit data and total fixed costs to remain the same in 20 times 9. The president of Jain Company is under pressure from stockholders to increase net income by $60,000 in 20 times 9. Compute the number of units sold in 20 times 8. Compute the number of units that would have to be sold in 20 times 9 to reach the stockholders desired profit level. Assume that Jain Company sells the same number of units in 20 times 9 as it did in 20 times 8. What would the selling price have to be in order to reach the stockholders' desired profit level? Halko Company had sales in 20 times 8 of $1,500,000 on 60,000 units. Variable costs totaled $720,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.40). However, to process the new raw material, fixed operating costs will increase by $50,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. Prepare a CVP income statement for 20 times 8, assuming the changes are made as described. Joe Vida owns the Peace Barber Shop. He employs five barbers and pays each a base rate of $1,200 per month. One of the barbers serves as the manager and receives an extra $600 per month. In addition to the base rate, each barber also receives a commission of $3.50 per haircut. Joe currently charges $10 per haircut. a. Determine the variable cost per haircut and the total monthly fixed costs. b. Compute the break-even point in units and dollars. c. Prepare a CVP graph, assuming the maximum of 1,800 haircuts in a month. Use