Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
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Category > Computer Science Posted 28 Aug 2017 My Price 8.00

Fredonia Barber Shop

P5-1A Richard Casper owns the Fredonia Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut.

Other costs are as  follows.

Advertising                   $200 per month

Rent                               $900 per month Barber supplies              $0.30 per haircut

Utilities                         $175 per month plus $0.20 per  haircut

Magazines                     $25 per month Richard currently charges $10 per  haircut.

Instructions

(a)   Determine the variable cost per haircut and the total monthly fixed costs.

(b)   Compute the break-even point in units and dollars.

(c)    Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use in- crements of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.

(d)   Determine net income, assuming 1,900 haircuts are given in a month.

Answers

Maurice Tutor
(5)
Status NEW Posted 28 Aug 2017 02:08 PM My Price 8.00

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