Question

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 plus $0.20 per haircut $25 per month Vin currently charges $10 per haircut. Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer) S.NO Particulars 10 1 0 0 2 m Sales @ 10 per hair cut Total Variable expenses @ 5 p.u Contribution Fixed Expenses Net operating income / (loss) Total cost (2+4) 300 3000 1500 1500 7000 -5500 8500 600 6000 3000 3000 7000 -4000 10000 Units sold 900 1200 9000 12000 4500 6000 4500 6000 7000 7000 -2500 -1000 11500 13000 1400 14000 7000 7000 7000 o 14000 1500 15000 7500 7500 7000 500 14500 1800 18000 9000 9000 7000 2000 16000 5 5 9000 5 6 7000 -7000 7000 hair cut charges Less: Variable cost commission to barber 4.5 Barber supplies 0.3 utilities 0.2 Contribution per hair cut Contribution in a month 1800*5 Fixed cost : Barbers base rate salary 5000 ( 1250*4) Extra commission to mana Advertising Rent 1100 Utilities magazines 25 Profit 500 200 175 7000 2000

VE sredi x-onin Icu = 30000) selling price To Toto cash Soo ВЕРСІЧю олія) Verable cojn - 20 & Fandus- o 300 600 900 1200 1400 1800. BEr as per fomule = Fixed cost / contbutin 2000/s 14o units = REDMI NOTE 6 PRO MI DUAL CAMERA 2020/2/21 05:21