Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Telly Savalas owns the Bonita Barber Shop. He employs 7 barbers and pays each a base rate of $1,500 per month. One of the barbers

image text in transcribed

Telly Savalas owns the Bonita Barber Shop. He employs 7 barbers and pays each a base rate of $1,500 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $5.80 per haircut. Other costs are as follows: Advertising $280 per month Rent $930 per month Barber supplies $0.40 per haircut Utilities $180 per month plus $0.30 per haircut Magazines $30 per month Telly currently charges $11.70 per haircut. Determine the variable cost 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. (Do not round any intermediate calculations and round only answers to 0 decimal places, e.g.1, 225.) Break-even point haircuts Break-even point $ Determine net income, assuming 2,490 haircuts are given in a month. Net income $

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

More Books

Students also viewed these Accounting questions

Question

demonstrate the importance of induction training.

Answered: 1 week ago