Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut. Other costs are as follows. Advertising $240 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $185 per month plus $0.10 per haircut Magazines $35 per month Sunland 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 $enter a dollar amount rounded to 2 decimal places Total fixed $enter a dollar amount Compute the break-even point in units and dollars. Break-even point enter the Break-even point in units haircuts Break even sales $enter the Break-even sales in dollars Determine net income, assuming 1,570 haircuts are given in a month. Net income / (Loss) $enter net income in dollars
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut. Other costs are as follows. Advertising $240 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $185 per month plus $0.10 per haircut Magazines $35 per month Sunland 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 $enter a dollar amount rounded to 2 decimal places Total fixed $enter a dollar amount Compute the break-even point in units and dollars. Break-even point enter the Break-even point in units haircuts Break even sales $enter the Break-even sales in dollars Determine net income, assuming 1,570 haircuts are given in a month. Net income / (Loss) $enter net income in dollars
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 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 $9.15 per haircut.
Other costs are as follows.
Sunland currently charges $16 per haircut.
Other costs are as follows.
| Advertising | $240 | per month | |
| Rent | $1,100 | per month | |
| Barber supplies | $0.35 | per haircut | |
| Utilities | $185 | per month plus $0.10 per haircut | |
| Magazines | $35 | per month |
Sunland 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 |
$enter a dollar amount rounded to 2 decimal places
|
|
|---|---|---|
| Total fixed |
$enter a dollar amount
|
Compute the break-even point in units and dollars.
| Break-even point |
enter the Break-even point in units
|
haircuts | |
| Break even sales |
$enter the Break-even sales in dollars
|
Determine net income, assuming 1,570 haircuts are given in a month.
| Net income / (Loss) |
$enter net income in dollars
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education