PROBLEM 5 - (1) $11Q = $5Q + $7,500 + $0 $6Q = $7,500 Q =...

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PROBLEM 5-1A (a) Variable costs (per haircut) Fixed costs (per month) Barber’s commission $4.00 Rent .60 Barber supplies .40 Total variable $5.00 Barbers’ salaries* $5,700 Rent 800 Depreciation 500 Utilities 300 Advertising 200 Total fixed $7,500 *(3 X $1,300) + $1,800 (b) Sales = Variable costs + Fixed costs + Net income
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Unformatted text preview: (1) $11Q = $5Q + $7,500 + $0 $6Q = $7,500 Q = 1,250 haircuts (2) 1,250 haircuts X $11 = $13,750 (d) Net income = Sales Variable costs Fixed costs Net income = $16,500 ($5.00 X 1,500) $7,500 = $1,500 (c) Break-even point...
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PROBLEM 5 - (1) $11Q = $5Q + $7,500 + $0 $6Q = $7,500 Q =...

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