Compute the break-even point and total monthly fixed costs

Assignment Help Managerial Accounting
Reference no: EM13503548

Problem :

Telly Savalas owns the Bonita Barber Shop. He employs6barbers and pays each a base rate of $1,300per month. One of the barbers serves as the manager and receives an extra $520per month. In addition to the base rate, each barber also receives a commission of $5.90per haircut.

Other costs are as follows.

 

Advertising
$260 per month
Rent
$960 per month
Barber supplies
$0.40 per haircut
Utilities
$170 per month plus $0.20per haircut
Magazines
$20 per month

Telly currently charges $11.70per haircut.

Determine the variable cost per haircut and the total monthly fixed costs.(Round variable costs to 2 decimal places, e.g. 2.25.)

Total variable cost per haircut $
Total fixed $

Compute the break-even point in units and dollars.(Round answers to 0 decimal places, e.g. 1,225.)

Break-even point haircuts
Break-even point $

Determine net income, assuming2,370haircuts are given in a month.

Net income $

Reference no: EM13503548

Questions Cloud

Compute break-even point in dollars for 2014 : Compute the break-even point in dollars for 2014 and compute the contribution margin under each of the alternative courses of action.
Explain the enthalpies of formation of elements : Enthalpies are relative quantities measured as changes from some comparative states. The enthalpies of formation of elements in their standard states at 25 degrees celcius are taken to be zero by convention
Explain how a submarine is caused to submerge : Explain how a submarine is caused to submerge and surface without the use of its propulsion propeller and fins
Estimate the coefficient of static friction : A student wants to determine the coefficients of static friction and kinetic friction between a box and a plank. What is the coefficient of static friction
Compute the break-even point and total monthly fixed costs : Compute the break-even point in units and dollars and determine the variable cost per haircut and the total monthly fixed costs.
How to calculate the change of entropy for the water : When liquid water at 0°C and 1 atm is converted to ice at 0°C and 1 atm, 6.01 kJ mol-1 of energy is released as heat to the surroundings. Calculate the change of entropy for the water, ΔSwater
Compute the break-even point in units and dollars : Compute the break-even point in units and dollars - Compute the margin of safety in dollars and as a ratio, assuming actual sales
What is the speed of a point on that rim : A child places a picnic basket on the outer rim of a merry-go-round that has a radius of 4.2 m and revolves once every 33 s. What is the speed of a point on that rim
Explain what mass of magnesium in reaction : What mass of magnesium, in reaction with an excess of hydrochloric acid, is needed to produce 128 mL of hydrogen (H2) gas. The H2 gas is collected over water at a temperature of 25°C and a total pressure (PBR) of 762 mmHg

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd