User Account

All Pages

Find the contribution margin per haircut

Assignment Help Management Theories
Reference no: EM13343692

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 (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.

  1. Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.
  2. Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.
  3. What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.
  4. 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: EM13343692

Questions Cloud

Evaluate the maximum mass of water : Gaseous butane will react with gaseous oxygen to produce gaseous carbon dioxide and gaseous water . Suppose 49. g of butane is mixed with 150. g of oxygen. Calculate the maximum mass of water that could be produced by the chemical reaction.
Determine the number of units of product : Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.
Explain carry out saponification of ethyl hexadecanoate : If you were to carry out saponification of ethyl hexadecanoate, would you expect the product to generate foam/froth when mixed and agitated with water
Market debt-equity ratio : In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share. GE also had cash of $13 billion, and total debt of $370 billion. Four years later, in early 2009, G..
Find the contribution margin per haircut : Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.
Find the velocity of the boat after batman lands in it : Batman (mass = 101 kg) jumps straight down from a bridge into a boat (mass = 590 kg) in which a criminal is fleeing. What is the velocity of the boat after Batman lands in it
Explain the reaction 5.5 ml c5h6 are used in the reaction : Find the theoretical yield for the following synthesis of ferrocene. 2KOH + 2C5H6 + FeCl2(H2O)4 --> Fe(C5H5)2 + 2KCl + 6H2O 25gKOH are in the reaction 5.5 mL C5H6 are used in the reaction
Compute the expected balance in accounts receivable : Prepare a schedule of cash collections for May through July and compute the expected balance in Accounts Receivable as of July 31.
What is the density of the enlarged sphere : A hollow sphere of negligible mass and radius R is completely filled with a liquid so that it's density is p. What is the density of the enlarged sphere

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

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