the Sasoon Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $$3,000$ per month. The other barbers are paid $$1,500$ per month. In addition, each barber is paid a commission of $$3$ per haircut. Other monthly costs are store rent $$700$ plus $60$ cents per haircut, depreciation on equipment $$400,$ barber supplies $40$ cents per haircut, utilities $$300,$ and advertising $$100.$ The price of a haircut is $$10.$Instructions a$)$Determine the net income, assuming $1,800$ haircuts are given in a month.P$5-2$B All Frute Company bottles and distributes Frute Ade, a fruit drink. The beverage is sold for $50$ cents per $16-$ounce bottle to retailers, who charge customers $70$ cents per bot$-$tle. For the year $2017,$ management estimates the following revenues and costs.Sales$$2,500,000$Selling expenses$$variable$ $80,000$Direct materials$360,000$Selling expenses$$fixed$250,000$Direct labor$450,000$Administrative expenses$$Manufacturing overhead$$variable$40,000$variable$270,000$Administrative expenses$$Manufacturing overhead$$fixed$150,000$fixed$380,000$Instructions$($a$)$Compute the contribution margin ratio and the margin of safety ratio.$($b$)$Determine the sales dollars required to earn net income of $$624,000.$P$5-3$B Olgivie Company had a bad year in $2016.$ For the first time in its history, it operated at a loss. The company$$s income statement showed the following results from selling $60,000$ units of product: sales $$1,800,000$; total costs and expenses $$2,010,000$; and net loss$$210,000.$ Costs and expenses consisted of the amounts shown below.TotalVariableFixedCost of goods sold$$1,350,000$$ $930,000$$$420,000$Selling expenses$480,000125,000355,000$Administrative expenses$180,000115,00065,000$$$2,010,000$$$1,170,000$$$840,000$Management is considering the following independent alternatives for $2017\mathrm{.}1.$Increase unit selling price $25\%$ with no change in costs, expenses, and sales volume$\mathrm{.}2.$Change the compensation of salespersons from fixed annual salaries totaling $$200,000$to total salaries of $$20,000$ plus a $5\%$ commission on net sales$\mathrm{.}3.$Purchase new high$-$tech factory machinery that will change the proportion betweenvariable and fixed cost of goods sold to $50$:$50.$Instructions$($a$)$Compute the break$-$even point in dollars for $2016.($b$)$Compute the break$-$even point in dollars under each of the alternative courses of action.$($Round all ratios to nearest full percent.$)$ Which course of action do you recommend?

P$5-4$B Alma Ortiz is the advertising manager for Cost Less Shoe Store. She is currently work$-$ing on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $$18,000$ in fixed costs to the $$216,000$ cur$-$rently spent. In addition, Alma is proposing that a $10\%$ price decrease $($from $$30$ to $$27)$ will produce an increase in sales volume from $20,000$ to $24,000$ units. Variable costs will remain at $$12$ per pair of shoes. Management is impressed with Alma$$s ideas but concerned about the effects that these changes will have on the break$-$even point and the margin of safety$\mathrm{.}25$ Cost Volume ProfitInstructions$($a$)$Compute the current break$-$even point in units, and compare it to the break$-$even pointin units if Alma$$s ideas are used.$($b$)$Compute the margin of safety ratio for current operations and after Alma$$s changesare introduced. $($Round to nearest full percent.$)($c$)$Prepare a CVP income statement for current operations and after Alma$$s changes areintroduced. $($Show column for total amounts only.$)$ Would you make the changessuggested?