User Account

All Pages

Determine the annual break-even point

Assignment Help Accounting Basics
Reference no: EM13858338

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 $0.40 per client. Assume that the only service performed is the giving of haircuts (including shampoo), 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: EM13858338

Questions Cloud

Whistleblowing and sarbanes-oxley : Describe the key characteristics of a whistleblower, and brieflysummarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whistleblower reported and..
Promote the use of their information technology products : Is it ethical for IT vendors such as Google to promote the use of their information technology products in pursuit of political revolutions in various countries
Report on reducing carbon footprint : The main purpose of this proposal is to adopt go green strategies that members of the company produce is order to become a more eco-friendly company, not just locally, but also globally.
Report on board of accountancy website : Board of Accountancy website
Determine the annual break-even point : Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.
Determine the displacement of b and a : The A992 steel rod is subjected to the loading shown. If the cross-sectional area of the rod is 60 mm2, determine the displacement of B and A, Neglect the size of the couplings at B, C, and D.
External parties for whom financial accounting reports : External parties for whom financial accounting reports are prepared.
How can parties expand the number of issues involved : How can parties expand the number of issues involved in a negotiation? Assess the advisability of expanding the issue as opposed to limiting the issues in negotiations
An excitable cell is impaled by a micropipette : An excitable cell is impaled by a micropipette, and a second extracellular electrode is placed close by at the outer-membrane surface. Brief pulses of current are then passed between these electrodes, which may cause it to conduct an action potential..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd