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Blossom Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,470 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 $8.45 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines Total fixed Blossom currently charges $15 per haircut. 1.) Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal place e.g. 2.25.) Total variable cost per haircut 2.) $290 $920 per month $0.45 per haircut $190 per month plus $0.10 per haircut $20 per month Break-even point Break even sales per month Compute the break-even point in units and dollars. $ $ $ haircuts 3.) Determine net income, assuming 2,000 haircuts are given in a month. Net income / (Loss) $

Blossom Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,470 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 $8.45 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines Total fixed Blossom currently charges $15 per haircut. 1.) Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal place e.g. 2.25.) Total variable cost per haircut 2.) $290 $920 per month $0.45 per haircut $190 per month plus $0.10 per haircut $20 per month Break-even point Break even sales per month Compute the break-even point in units and dollars. $ $ $ haircuts 3.) Determine net income, assuming 2,000 haircuts are given in a month. Net income / (Loss) $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,470 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 $8.45 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities. Magazines Total fixed 2.) Blossom currently charges $15 per haircut. 1.) 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 Break-even point $290 $920 $0.45 $190 $20 Break even sales 3.) per month per month per haircut per month plus $0.10 per haircut per month Compute the break-even point in units and dollars. $ $ $ haircuts. Determine net income, assuming 2,000 haircuts are given in a month. Net income (Loss) $
Transcribed Image Text:Blossom Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,470 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 $8.45 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities. Magazines Total fixed 2.) Blossom currently charges $15 per haircut. 1.) 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 Break-even point $290 $920 $0.45 $190 $20 Break even sales 3.) per month per month per haircut per month plus $0.10 per haircut per month Compute the break-even point in units and dollars. $ $ $ haircuts. Determine net income, assuming 2,000 haircuts are given in a month. Net income (Loss) $
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