Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers
and pays each a base rate of $1,370 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 $5.86 per haircut.
Other costs are as follows.
Advertising | $200 | per month | |
Rent | $930 | per month | |
Barber supplies | $0.48 | per haircut | |
Utilities | $175 | per month plus $0.31 per haircut | |
Magazines | $30 | per month |
Vin currently charges $11.65 per haircut.
Determine net income, assuming 2,490 haircuts are given in a
month. (Round answer to 0 decimal places, e.g.
1,225.)
Net income / (Loss) |
$ |
Solution
Net income | $ 1,025 |
Working
Income statement at 2490 haircuts | |
Sales revenue | $ 29,008.50 |
Variable costs (2490 x 6.65) | $ 16,558.50 |
Contribution margin | $ 12,450.00 |
Fixed cost | $ 11,425.00 |
Net income | $ 1,025.00 |
.
Variable costs | Amount | |
Barber supplies | $ 0.48 | |
Utilities | $ 0.31 | |
Commission | $ 5.86 | |
Total Variable cost per Haircut | $ 6.65 |
.
Fixed costs | ||
Advertising | $ 200.00 | |
Rent | $ 930.00 | |
Utilities | $ 175.00 | |
Magazines | $ 30.00 | |
Barber salaries | (7*1370)+500 | $ 10,090.00 |
Total Fixed cost | $ 11,425.00 |
Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the...
Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,640 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 $5.96 per haircut. Problem 18-1A Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,640 per month. One of the barbers serves...
Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 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 $4.50 per haircut. Other costs are as follows. Advertising $200 per month Rent $1,100 per month Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magazines $25...
Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,640 per month. One of the barbers serves as the manager and receives an extra $510 per month. In addition to the base rate, each barber also receives a commission of $5.81 per haircut. Other costs are as follows. Advertising $200 per month Rent $960 per month Barber supplies $0.31 per haircut Utilities $185 per month plus $0.30 per haircut Magazines $30...
Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,640 per month. One of the barbers serves as the manager and receives an extra $510 per month. In addition to the base rate, each barber also receives a commission of $5.81 per haircut. Other costs are as follows. Advertising $200 per month Rent $960 per month Barber supplies $0.31 per haircut Utilities $185 per month plus $0.30 per haircut Magazines $30...
Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.80 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $250 per month $960 per month $0.44 per haircut $170 per month plus $0.36 per haircut $25...
Carla Vista Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1.200 per month. One of the barbers serves as the manager and receives an extra $555 per month. In addition to the base rate, each barber also receives a commission of $5.90 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $300 per month $1.010 per month $0.50 per haircut $170 per month plus $0.10 per haircut...
Problem 19-1A Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.84 per haircut. Other costs are as follows. Advertising $250 per month Rent $960 per month Barber supplies $0.44 per haircut Utilities $170 per month plus $0.37 per haircut...
Vin Diesel owns the Sheffield Barber Shop. He employs 7 barbers and pays each a base rate of $1,570 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $4.50 per haircut. Other costs are as follows. Advertising $310 per month Rent $920 per month Barber supplies $0.30 per haircut Utilities $180 per month plus $0.20 per haircut Magazines $20...
Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,480 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base rate, each barber also receives a commission of $5.35 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $210 per month $1,080 per month $0.40 per haircut $200 per month plus $0.25 per haircut $35...
Problem 5-2A C (Essay) (Video) Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 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 $4.50 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $200 per month $1,100 per month $0.30 per haircut $175 per month...