Problem 18-1A (Part Level Submission) Vin Diesel owns the Fredonia Barber Shop.
ID: 2513600 • Letter: P
Question
Problem 18-1A (Part Level Submission) Vin Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of S 1,350 per month?One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $200 per month 910 per month $0.30 per haircut $170 per month plus $0.30 per haircut $20 per month Vin currently charges $11.46 per haircut.Explanation / Answer
Answer:
Computation of net income of Vin Diesel for a month
Answer:
Computation of net income of Vin Diesel for a month
Particular Amount ($) Gross Income (A) 26358 2300 haircut @ $11.46 Less: Salary to barber 8100 $1350 * 6 barbers Managerial remuneration to barber 530 Commission to barbers 13478 Advertising 200 Rent 910 Barber Supplies 690 ($0.30*2300) Utilities 860 (170+(0.3*2300)) Magzines 20 Total Cost (B) 24788 24788 Net Income(A-B) $1570