Determine variable and fixed costs and break-even point

Assignment Help Managerial Economics
Reference no: EM1372502

Matt Reiss have the Fredonia Barber Shop. He employs 5-barbers and pays each a base rate of $1,000 every month. One of the barbers serves as manager and receives an extra $500 every month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut.

Other costs are as follows.

Advertising $200 per month
Rent $900 per month
Barber supplies $0.30 per haircut
Utilities $175 per month plus $0.20 per haircut
Magazines $25 per month

Matt currently charges $10 per haircut.
Hint:
Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income.

Instructions
(a) Determine the variable cost per haircut and the total monthly fixed costs.

(b) Compute the break-even point in units and dollars.

(d) Determine net income, assuming 1,900 haircuts are given in a month.

 

Reference no: EM1372502

What can company do to induce juan to purchase more clothing

The Johnson Company is the sole producer of clothing. What can the company do to induce Juan to purchase more clothing? Show graphically. (The graph does not have to be exac

Derive the demand curves for ggcs product in each market

BUS640- Derive the demand curves for GGC's product in each market. Derive GGC's marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC's de

What potential problems exist in agency relationships

What potential problems exist in agency relationships? Is it worthwhile for shareholders to seek to completely eliminate incentive problems with managers and directors throu

What will bingo choose to do in equilibrium

Formulate the following situation as an extensive form game (using a game tree) and solve it using backward induction.  What will Bingo choose to do in equilibrium, and what w

The age of confessional division produced religious

During the 16th century, The Age of Confessional Division produced religious wars in France, Spain, and the Netherlands. Choose one of these conflicts and discuss the events,

Using hatfield data and its industry averages

Answer the questions show all work for your answers; be complete; but, concise with your analysis. If you wish to elaborate on your calculations for the ratios, please do so

Calculate the expected stock price and standard deviation

Assume that a stock price has an expected return of 16% per year and a volatility of 30% per year. When the stock price at the end of a certain day is $50,

Explain the price and output agreements

Over the last thirty years the company of Petroleum Exporting Countries has had varied success in forming and maintaining its cartel agreements.

Reviews

Write a Review

 
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