Answer 9. Mohammed Al Harthi owns the Barber Shop. He employs five barbers and pays each a baserate of $2,000 per month. One of the barbers serves as the manager and receives an extra$1,000 per month. In addition to the base rate, each barber also receives a commission of$11.00 per haircut.Other costs are as follows.$400 per month$1,800 per month$0.60 per haircut$50 per monthAdvertisingRentBarber suppliesMagazinesUtilities $350 per month plus $0.40 per haircutMohammed currently charges $20 per haircut.Instructions(a) Determine the variable cost per haircut and the total monthly fixed costs.(b) Compute the break-even point in units and dollars.(c) Determine net income, assuming 3,800 haircuts are given in a month.(d) Determine the margin of safety with 3,800 haircuts

Selling price is a price set by the supplier at which he is ready to sell his goods. The cost that…

9. Mohammed AI Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut. Other costs are as follows. Advertising $400 per month $1,800 per month $0.60 per haircut $50 per month Rent Barber supplies Magazines Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts

9. Mohammed AI Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut. Other costs are as follows. Advertising $400 per month $1,800 per month $0.60 per haircut $50 per month Rent Barber supplies Magazines Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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9. Mohammed Al Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut. Other costs are as follows. $400 per month $1,800 per month $0.60 per haircut $50 per month Advertising Rent Barber supplies Magazines Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts
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Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base rate, each barber also receives a commission of$5.85 per haircut. Other costs are as follows. Advertising $300 per month Rent $950 per month Barber supplies $0.50 per haircut $170 per month plus $0.15 per haircut $30 per month Utilities Magazines Crane currently charges $13 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, eg. 2.25) Total variable cost per haircut Total fixed Compute the break-even point in units and dollars. Break-even point haircuts Break even seles
Sandhill Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,430 per month. One of the barbers serves as the manager and receives an extra $600 per month, In addition to the base rate, each barber also receives a commission of $6.00 per haircut Other costs are as follows. Advertising $260 per month Rent $1.000 per month Barber supplies $0.50 per haircut Utilities $150 per month plus $0.10 per haircut Magazines $20 per month Sandhill currently charges $12 per haircut.
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 $200permonth Rent $1,100permonth Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magazines $25 per monthVin currently charges $10 per haircut.Instructions(a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use incre-ments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month.
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Matthew Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base salary of $1,490 per month. One of the barbers serves as the manager and receives an extra $600 per month. In addition to the base salary, each barber also receives a commission of $10.40 per haircut. Other costs are as follows. Advertising $ 220 per month Rent $950 per month Barber supplies $0.50 per haircut Utilities $195 per month plus $0.10 per haircut Magazines $30 per month Matthew currently charges $20.00 per haircut.mpute the break-even point in sales units and in sales dollars. Break - even point haircuts Break-even point sales Break-even point Compute the break-even point in sales units and in sales dollars. Break-even point sales $ 3 Tauthooke sød Madis c haircuts
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…
Mark Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base salary of $1,200 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base salary, each barber also receives a commission of $6.10 per haircut.Other costs are as follows. Advertising $270 per month Rent $970 per month Barber supplies $0.40 per haircut Utilities $175 per month plus $0.10 per haircut Magazines $20 per month Mark currently charges $12.00 per haircut. Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total unit variable cost per haircut $enter total variable cost per haircut rounded to 2 decimal places in dollars Total fixed costs $enter total fixed cost in dollars
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Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut.