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(a) Variable cost per haircut :-
Barber commission | $4.50 |
Barber supplies | $0.30 |
Utilities | $0.20 |
Variable cost per haircut | $5.00 |
Total monthly fixed cost :-
Barber salary (5 x 1,490) | 7,450 |
Manager salary | 550 |
Rent | 990 |
Advertisement | 270 |
Utilities | 185 |
Magazines | 20 |
Total monthly fixed cost | $9,465 |
(b) Breakeven point in units :-
= Fixed cost/contribution per unit
= 9,465/(10 - 5)
= 1,893 units
Breakeven point in sales :-
= Breakeven units x selling price
= 1,893 x $10
= $18,930
Problem 11-1 (Part Level Submission) Vin Diesel owns the Blue Spruce Barber Shop. He employs 5...
Vin Diesel owns the Blue Spruce Barber Shop. He employs 5
barbers and pays each a base rate of $1,490 per month. One of the
barbers serves as the manager and receives an extra $550 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
$270
per month
Rent
$990
per month
Barber supplies
$0.30
per haircut
Utilities
$185
per month plus $0.20 per haircut
Magazines...
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 Blue Spruce Barber Shop. He employs 5
barbers and pays each a base rate of $1,490 per month. One of the
barbers serves as the manager and receives an extra $550 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
$270
per month
Rent
$990
per month
Barber supplies
$0.30
per haircut
Utilities
$185
per month plus $0.20 per haircut
Magazines...
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 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...
Problem 19-1A Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,500 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 $5.77 per haircut. Other costs are as follows. Advertising $230 per month $980 per month Rent Barber supplies $0.36 per haircut Utilities $170 per month plus $0.30 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...
PRINTER VERSION BACK Vin Diesel owns the Fredonia Barber Shop. He employs barbers and pays each a base rate of $1,500 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 $5.77 per haircut Other costs are as follows. Advertising $230 per month Rent $980 per month Barber supplies 30.36 per haircut Utilities $170 per month plus $0,30 per haircut...
Problem 18-1A Vin Diesel owns the Fredonia Barber Shop. He employs barbers and pays each a base rate of $1,490 per month. One of the barbers serves as the manager and receives an extra $550 per month. In addition to the base rate, each barber also receives a commission of $5.74 per haircut Other costs are as follows Advertising $270 per month 5990 per month $0.46 perhati $185 per month plus 50.23 per haircut $20 month Utilities Vin currently charges...
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...