Magazines per Sheridan 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 $ 9.6 Total fixed $ 8320 eTextbook and Media Compute the break-even point in units and dollars. Break-even point haircuts Break even sales eTextbook and Media Determine net income, assuming 1,590 haircuts are given in a month. Net income / (Loss) %24 %24 %24

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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Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $ 1,570 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 $ 9.05 per haircut.
Other costs are as follows.
Advertising
$ 270
per month
Rent
$ 1,060
per month
Barber supplies
$0.45
per haircut
Utilities
$ 195
per month plus $ 0.10 per haircut
Magazines
$ 15
per month
Sheridan 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
2$
9.6
Total fixed
24
8320
eTextbook and Media
Compute the break-even point in units and dollars.
Break-even point
haircuts
Break even sales
2$
eTextbook and Media
Determine net income, assuming 1,590 haircuts are given in a month.
Net income / (Loss)
$
Transcribed Image Text:Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $ 1,570 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 $ 9.05 per haircut. Other costs are as follows. Advertising $ 270 per month Rent $ 1,060 per month Barber supplies $0.45 per haircut Utilities $ 195 per month plus $ 0.10 per haircut Magazines $ 15 per month Sheridan 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 2$ 9.6 Total fixed 24 8320 eTextbook and Media Compute the break-even point in units and dollars. Break-even point haircuts Break even sales 2$ eTextbook and Media Determine net income, assuming 1,590 haircuts are given in a month. Net income / (Loss) $
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