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Vin Diesel owns and operates the Fredonia Barber Shop. He pays himself a monthly salary of $1,750. He employs three other barbers who are paid
Vin Diesel owns and operates the Fredonia Barber Shop. He pays himself a monthly salary of $1,750. He employs three other barbers who are paid a monthly salary of $1,250. All barbers, including Diesel, get paid a commission of $4 per haircut. Diesel charges $12 per haircut and plans to give 1,600 haircuts per month. Other costs are as follows: Advertising Rent Magazines Barber supplies Utilities Utilities $ $ $ $ $ 200 per month 1,100 per month 100 per month 0.50 per haircut 0.30 per haircut 200 per month 1) Complete the chart below to find contribution margin per unit and contribution margin ratio (%) TOTAL UNIT Sales $ $ Variable costs Contribution margin % % % $ Fixed costs Net Income $ 21 ralenta 11
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