Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut. Other costs are as follows. Advertising $240 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $185 per month plus $0.10 per haircut Magazines $35 per month Sunland currently charges $16 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut $enter a dollar amount rounded to 2 decimal places Total fixed $enter a dollar amount Compute the break-even point in units and dollars. Break-even point enter the Break-even point in units haircuts Break even sales $enter the Break-even sales in dollars Determine net income, assuming 1,570 haircuts are given in a month. Net income / (Loss) $enter net income in dollars
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut. Other costs are as follows. Advertising $240 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $185 per month plus $0.10 per haircut Magazines $35 per month Sunland currently charges $16 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut $enter a dollar amount rounded to 2 decimal places Total fixed $enter a dollar amount Compute the break-even point in units and dollars. Break-even point enter the Break-even point in units haircuts Break even sales $enter the Break-even sales in dollars Determine net income, assuming 1,570 haircuts are given in a month. Net income / (Loss) $enter net income in dollars
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut.
Other costs are as follows.
Sunland currently charges $16 per haircut.
Other costs are as follows.
| Advertising | $240 | per month | |
| Rent | $1,100 | per month | |
| Barber supplies | $0.35 | per haircut | |
| Utilities | $185 | per month plus $0.10 per haircut | |
| Magazines | $35 | per month |
Sunland currently charges $16 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
| Total variable cost per haircut |
$enter a dollar amount rounded to 2 decimal places
|
|
|---|---|---|
| Total fixed |
$enter a dollar amount
|
Compute the break-even point in units and dollars.
| Break-even point |
enter the Break-even point in units
|
haircuts | |
| Break even sales |
$enter the Break-even sales in dollars
|
Determine net income, assuming 1,570 haircuts are given in a month.
| Net income / (Loss) |
$enter net income in dollars
|
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