Please do part D Problem 18-1A (Part Level Submission) Vin Diesel owns the Fredo
ID: 2531246 • Letter: P
Question
Please do part D
Problem 18-1A (Part Level Submission) Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,300 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 $5.63 per haircut Other costs are as follows. Advertising Rent Barber supplies $290 per month $910 per month $0.39 per haircut $180 per month plus ?0.24 per haircut Utilities Magazines Vin currently charges $11.26 per haircut. $20 per month Your answer is correct Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut Total fixed 6.26 8440 Click if you would like to Show Work for this question: Open Show Work SHOWN SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used Your answer is correct. Compute the break-even point in units and dollars. (Round answers to O decimal places, e.g 1,225.) Break-even point Break-even point 1688 haircuts 19007Explanation / Answer
Answers
Working
A
Revenue per haircut
$ 11.26
B=A x $2370
Total revenue for 2370 haircuts
$ 26,686.20
C
Total Variable cost per haircut [as correctly answered by you]
$ 6.26
D
Total no. of haircuts
2370
E=C x D
Total variable cost for 2370 haircuts
$ 14,836.20
F
Total Fixed cost [as correctly answered by you]
$ 8,440.00
G= E + F
Total cost for 2370 haircuts
$ 23,276.20
H = B – G
Net Income/(Loss)
$ 3,410.00
Working
A
Revenue per haircut
$ 11.26
B=A x $2370
Total revenue for 2370 haircuts
$ 26,686.20
C
Total Variable cost per haircut [as correctly answered by you]
$ 6.26
D
Total no. of haircuts
2370
E=C x D
Total variable cost for 2370 haircuts
$ 14,836.20
F
Total Fixed cost [as correctly answered by you]
$ 8,440.00
G= E + F
Total cost for 2370 haircuts
$ 23,276.20
H = B – G
Net Income/(Loss)
$ 3,410.00