Determine the variable cost

Assignment Help Managerial Economics
Reference no: EM1372540

The peace barber shop employs 4-barbers. One barber, who also serves as the manager, is paid a salary of $1,800 every month. The other barbers are paid 1,300 every month. In addition, each barber is paid a commission of $4 per haircut. Other monthly costs are: store rent $800 plus 60 cents per haircut, depreciation on equipment $500, barber supplies 40 cents per haircut, utlilities $300, and advertising $ 200. the price of a haircut is $11.

Instructions
(1) how can I determine the variable cost per haircut and the total monthly fixed cost
(2) how do I compute the break even point in units and dollars
(3) How do I determine the net income, assuming 1500 are given in a month?

 

Reference no: EM1372540

Questions Cloud

Find the decrease in kinetic energy through the collision : A 0.22kg arrow with a velocity of 15.00 m/s to the west strikes and pierces the center of a 3.00 kg target. What is the final velocity of combined mass? Answer in m/s.
Distinguish traffic in current isp backbones-manage quality : Based on reading, is there pressing require to distinguish traffic in current ISP backbones to manage quality of service? Explain why or why not.
What is the force of friction opposing the motion of crate : A 9 m, 220 N uniform ladders rests against a smooth wall. The coefficient of static friction between the ladder and the ground is 0.55, and the ladder makes a 50° angle with ground. How far up the ladder can an 850 N person climb before ladder beg..
Use of technology in marketing : What are some of the ethical considerations that marketing professionals face? How do these situations develop, and how should they be addressed?
Determine the variable cost : The peace barber shop employs 4-barbers. One barber, who also serves as the manager, is paid a salary of $1,800 every month. The other barbers are paid 1,300 every month.
What are key differences between ontological- teleological : What are key differences between ontological, teleological and cosmological arguments. Identify philosopher who you think best supports his or her argument. Explain your answer briefly.
How far up the ladder can a person climb : A 46kg box is being pushed a distance of 7 m across the floor by the force vector P whose magnitude is 144N. The force vector P is parallel to the displacement of the box.
Why does government mandate individuals to purchase : Why does government mandate individuals to purchase their own insurance in some cases such as automobile liability insurance but directly provide insurance to people in or situations such as health insurance.
Develop a formula predicting the percentage : A 3.00 kg bucket of water is raised from a well by a rope. If the upward acceleration of the bucket is 2.20 m/s2, find out the force exerted by the rope on bucket of water.

Reviews

Write a Review

 

Managerial Economics Questions & Answers

  Find the marginal product of labor

The following table given below presents estimates of the maximum levels of output possible with various combination of two inputs.

  Finding output, revenues, costs, and profits

The Alex Corporation uses two inputs, A and B, to produce boats. The production function for boats is given through

  Estimating profit

Your supervisor recently instituted a plan that encourages her managers to share non private demographic characteristics voluntarily provided by those who buy your company's final product.

  Determine the total output

Two local ready mix cement manufacturers, Here and There, have combined demand given through Q = 105 - P. Their total expenses are given by TC = 5Q + 0.5Q2 and TC = 5Q + 0.5Q2.

  Calculate the firm current contribution margin

Brazen, Corporation produces sound amplifiers for electric guitars. The company's income statement showed the following;

  Question about reserve prices and extended warranties

A reserve value is a minimum value set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer.

  Managerial economics assignment

Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.

  Sales trend analysis

During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.

  System of fixed wages

American Linen is a company that has multiple salespersons. In 2008, it changed the compensation method for its sales force, moving from a system of fixed wages to one of base wage plus charge.

  Shut down decision

An unprofitable company has employed me to determine whether they should shut down there unprofitable operation or not.

  Compute the break even point in dollars

Cruz Manufacturing had a very bad year in 2008. For 1st time in its history it operated at a loss. The firm's income statement showed the following results from selling 80,000 units of product:

  Determine variable and fixed costs and break-even point

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.

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