Reference no: EM131007064
Stan Loy owns the Vista Barber Shop. He employs 5 barbers and pays each a base rate of $1000 per month. One of the barbers serves as a manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut.
Other costs: Advertising $200 per month, Rent 900 per month, Barber supplies .30 per haircut, Utilities 175 per month plus .20 per haircut, Magazines 25 per month.
Stan currently charges $10 per haircut.
a) Determine the variable cost per haircut and the total monthly fixes costs
b) Compute the break even point in units and dollars
c) Prepara a CVP graph assuming a maximum of $1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.
d) Determine net income, assuming 1,900 haircuts are given in a month.
|
Tools and industrial equipment
: Namath Manufacturing Co manufactures a variety tools and industrial equipment. The company operates through 3 divisions. Ea divisions is an investment center. Operating data for the Home Division for the year ended Dec 31, 2012, and relevant bu..
|
|
What strategies are effective in overcoming a challenge
: What strategies are effective in overcoming a challenge associated with intangible goods? Describe a situation and evaluate the marketing challenges that are associated with it
|
|
Prepare production budget
: a) Prepare a sales budget for 2013 under each plan b) Prepare production budget for 2013 under ea plan
|
|
Find the ratio of final blood pressure to initial pressure
: Use Poiseuille's Law to find the ratio of final blood pressure to initial pressure in an artery where the radius of the artery has been reduced (by deposits of arterial plaque) by one quarter.
|
|
Determine the variable cost per haircut
: a) Determine the variable cost per haircut and the total monthly fixes costs b) Compute the break even point in units and dollars
|
|
Physical units of production
: 1) Compute the physical units of production 2) Compute equivalent units of production for materials and conversion costs 3) Determine the unit cost of production
|
|
Company manufacturing cost and other expense data
: 1) Fabila Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by customers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Fa..
|
|
Accounting rate of return
: The company anticipates a yearly net income of $2,850 after taxes of 30%, with the cash flows to be received evenly throughout of each year. What is the accounting rate of return?
|
|
Monterey average investment
: Monterey uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Monterey's average investment?
|