Answer 9. Mohammed Al Harthi owns the Barber Shop. He employs five barbers and pays each a baserate of $2,000 per month. One of the barbers serves as the manager and receives an extra$1,000 per month. In addition to the base rate, each barber also receives a commission of$11.00 per haircut.Other costs are as follows.$400 per month$1,800 per month$0.60 per haircut$50 per monthAdvertisingRentBarber suppliesMagazinesUtilities $350 per month plus $0.40 per haircutMohammed currently charges $20 per haircut.Instructions(a) Determine the variable cost per haircut and the total monthly fixed costs.(b) Compute the break-even point in units and dollars.(c) Determine net income, assuming 3,800 haircuts are given in a month.(d) Determine the margin of safety with 3,800 haircuts

Selling price is a price set by the supplier at which he is ready to sell his goods. The cost that…

9. Mohammed AI Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut. Other costs are as follows. Advertising $400 per month $1,800 per month $0.60 per haircut $50 per month Rent Barber supplies Magazines Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts

9. Mohammed AI Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of $2,000 per month. One of the barbers serves as the manager and receives an extra $1,000 per month. In addition to the base rate, each barber also receives a commission of $11.00 per haircut. Other costs are as follows. Advertising $400 per month $1,800 per month $0.60 per haircut $50 per month Rent Barber supplies Magazines Utilities $350 per month plus $0.40 per haircut Mohammed currently charges $20 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 3,800 haircuts are given in a month. (d) Determine the margin of safety with 3,800 haircuts

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 4E: Peggy Nolan earns 20 per hour for up to 300 units of production per day. If she produces more than...

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