Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,900 per month. The other

image text in transcribedimage text in transcribed

The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,900 per month. The other barbers are paid $1,370 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $810 plus 60 cents per haircut; depreciation on equipment $520; barber supplies 40 cents per haircut; utilities $330; and advertising $210. The price of a haircut is $13. (a) Your answer is correct. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) eTextbook and Media Attempts: 1 of 3 used (b) Calculate the break-even point in units and dollars. (d) Determine the operating income, assuming 1,540 haircuts are given in a month. Operating income \$ eTextbook and Media Attempts: 0 of 3 used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions