Reference no: EM131421355
Assignment
Description
Consider the following scenario:
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is $0.40 per client. Assume that the only service performed is the giving of haircuts (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.
• Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.
• Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.
• What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.
• Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? Show calculations to support your answer.
Using the information provided, provide a memo to Andre explaining the completed analysis and how he should use this information to monitor the operations of the barber shop. The memo should explain the cost associated with the barber shop including their relationships.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
|
Compute sega-venus’s conservatism ratio
: Explain why the conservatism ratio provides a measure of the extent to which a company's financial accounting methods are conservative, and provide examples of accounting treatments that may increase or decrease the ratio.
|
|
Expression for the magnitude of the acceleration
: Write down an expression for the magnitude of the acceleration of a car accelerating under the influence of gravity down a hill at a given angle of steepness.
|
|
Velocity of the football at the pinnacle of its trajectory
: A football is kicked with an initial speed of 10.2 m/s at an angle of 40.00 above the horizontal. It lands on the ground 2.12 s later. Determine the velocity of the football at the pinnacle of its trajectory.
|
|
Select two of the scenarios in the applications list
: Select two of the scenarios in the Applications list 12.2 (a.-ff.) at the end of Ch. 12 in The Art of Thinking.Apply the following in a paper of 600 to 800 words for each scenario:Evaluate each argument, using the four-step process described on pp. ..
|
|
Determine the annual break-even point in number of haircuts
: Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.
|
|
Prepare journal entries to record the sale of cereal boxes
: Prepare the journal entries to record the sale of the cereal boxes, the recognition of the contingent liability associated with the potential refunds, and the actual refund payments for 2011 and 2012.
|
|
Describe in your own terms the resonance
: 1.) Describe in your own terms the resonance. Give at least two examples. 2.) Give two examples which will demonstrate that the speed of sound depends on the density of the particles of the medium.
|
|
Discuss the type of consumer product you identified
: The success of a product or a company in the marketplace is highly dependent on the target markets ability to distinguish a given product from another. One way this is accomplished is through branding. When it comes to branding, companies must mak..
|
|
Electric field intensity produced by a charge
: What is the electric field intensity produced by a charge at 10 meters, where the equipotential (electric potential) is 1.44 volts?
|