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The peace barber shop employs 4-barbers. One barber, who also serves as the manager, is paid a salary of $1,800 every month. The other barbers are paid 1,300 every month. In addition, each barber is paid a commission of $4 per haircut. Other monthly costs are: store rent $800 plus 60 cents per haircut, depreciation on equipment $500, barber supplies 40 cents per haircut, utlilities $300, and advertising $ 200. the price of a haircut is $11.
Instructions(1) how can I determine the variable cost per haircut and the total monthly fixed cost(2) how do I compute the break even point in units and dollars(3) How do I determine the net income, assuming 1500 are given in a month?
The hourly wage rate is $6, hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run.
A company has the following short run demand and cost schedule for a particular product; Estimate the firm's profit-maximizing Quantity, Price, and economic profits or losses.
The following questions refer to a company, whose manager recently estimated its average variable cost function to be;
Suppose Amanda Herman finds that her total spending on compact dics remaing same after price of compact fall, other things equal.
Assume, after graduation, you take a job in a company in Chile that manufactures faux leather shoes. One day, your boss comes in and says, "this company is not operating at a profit
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Enpar manufactures a one type of engine part for an automotive manufacturer. It operates 2-plants, Plant A and Plant B, which have the following production functions:
David Ding advertises on a local radio station. For last 6-weeks, the manager has kept records of the number of minutes of advertising that were bought, and the sales for that week.
Now that many businesses have upgraded to an online platform, are paper catalogs a thing of the last? Let's look at this from both sides of the table, both the customers and the manager.
If a manager that takes over a furniture factory and realizes immediately that it was throwing away at least $100,000 a year worth of wood scrap
Sparkling Pipes, Corporation offers professional furnace duct cleaning to home owners in Danville, Illinois. The firm estimates that each additional room of ducts it cleans costs the company $10.
College A is planning outsourcing their groundskeeping. They have been given a bid from Groundskeeper Willie for $250,000 a year, with the claim that he will keep school grounds in the same condition they are in now.
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