FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Determine net income, assuming 1,900 haircuts aregiven in a month.
Net income/(Loss)
Transcribed Image Text: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.
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