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Accounting homework help!!!!!!?
Matt Reiss owns the Fredonia 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$210 per month
Rent$940 per month
Barber supplies$0.40 per haircut
Utilities$175 per month plus $0.30 per haircut
Magazines$25 per month
Matt currently charges $11.40 per haircut.
(1) Determine the variable cost per haircut and the total monthly fixed costs.
Variable costs…
Total fixed costs…
* Round answer to 2 decimal places.
………………………………………………………………………..
(2) Compute the break-even point in units and dollars. (Round answers to 0 decimal places.)
Breakeven point in units
Breakeven point in dollars
(3) Determine net income, assuming 2,100 haircuts are given in a month.
Operating from the assumption that 2,100 hair cuts are given in a month….
1) Total fixed cost before haircuts = $9,090.00
Total fixed cost after haircuts = $22,530.00
Variable costs = $13,440.00
2) Breakeven point in # of haircuts = 1,977 rounded up from 1976.33
Breakeven point in $ = $22,530.00
3) Net Income = $1,410.00