Andre has asked you to evaluate his business andrersquos

Reference no: EM13392897

Andre has asked you to evaluate his business, Andre’s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is .40 per client. Assume that the only service performed is the giving of haircuts, the unit price of which is $12. Andre has asked you to find the following information.

Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.

Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.

What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.

Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? Show calculations to support your answer.

Reference no: EM13392897

Questions Cloud

Assume that the following tax rates and payroll information : assume that the following tax rates and payroll information pertain to brookhaven publishing social security taxes 4 on

Determine the price elasticity from the characteristics and : each individual determinant analyzed for your situation with examples applicable to your situation and research 3

Assess two to four 2-4 weaknesses which are evident in the : write a six to eight 6-8 page paper in which you 1 evaluate two to four 2-4 weaknesses that are evident in the selected

Select a company and a product in an industry affected by : in this assignment you will compare and contrast the differences between marketing strategies in a changing competitive

Andre has asked you to evaluate his business andrersquos : andre has asked you to evaluate his business andrersquos hair styling. andre has five barbers working for him. andre is

Assess two to four 2-4 weaknesses which are evident in the : write a six to eight 6-8 page paper in which you 1 evaluate two to four 2-4 weaknesses that are evident in the selected

Calculating the rate of return of investment using : 1.calculating net asset value. given the information below calculate the net asset value for the boston equity mutual

Instructions determine the effect upon carrying value and : you have just started work for warren co. as part of the controllers group involved in current financial reporting

By using the net-present-value method determine whether : columbia enterprises is studying the replacement of some equipment that originally cost 74000. the equipment is

User Account

All Pages