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Problem 19-1A - Telly Savalas owns the Bonita Barber Shop




Question;Problem 19-1ATelly Savalas owns the Bonita Barber Shop. He employs 6 barbers and pays each a base rate of $1,200 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $5.70 per haircut.Other costs are as follows.Advertising$250 per monthRent$990 per monthBarber suppliesUtilitiesMagazines$0.50 per haircut$175 per month plus $0.40 per haircut$30 per monthTelly currently charges $11.80 per haircut.Determine the variable cost per haircut and the total monthly fixed costs. (Round variable costs to 2 decimalplaces, 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 pointhaircutsBreak-even point $Determine net income, assuming 2,400 haircuts are given in a month.Net income $


Paper#43880 | Written in 18-Jul-2015

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