Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sheridan Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,570 per month. One of the barbers
Sheridan Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,570 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 $5.90 per haircut. Other costs are as follows. Advertising $310 per month Rent $920 per month Barber supplies $0.44 per haircut Utilities $180 per month plus $0.36 per haircut Magazines $20 per month Sheridan currently charges $12.70 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. Break-even point haircuts Break even sales $ Determine net income, assuming 3,020 haircuts are given in a month. 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