P23-1A - dollars = 3,000 6,000 9,000 12,000 15,000 18,000...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework # 10 P 23-1A a) Variable cost per haircut = 4 + 0.6 + 0.4 = 5 Total monthly fixed cost = 2 200 + 1 400*3 + 700 + 500 + 300 + 100 = 8000 b) Contribution margin per unit = 10 - 5 = 5 Break-even point in units = 8 000/5 = 1600 Contribution margin ratio = 5/10 = 50% Break-even point in dollars = 8 000/50% = 16000 c) max = 1,800 haircuts = 300 600 900 1,200 1,500 1,800
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: dollars = 3,000 6,000 9,000 12,000 15,000 18,000 fixed = 8,000 8,000 8,000 8,000 8,000 8,000 var = 1500 3000 4500 6000 7500 9000 d) 10*1 700 = 5*1 700 + 8 000 + Net income 17 000 = 8 500 + 8 000 + Net income 17 000 = 16 500 + Net income x = 500 300 600 900 1,200 1,500 1,800 3000 6000 9000 12000 CVP graph Row 17 Row 18 Haircuts Dollars...
View Full Document

This note was uploaded on 09/20/2011 for the course ACCT 221 taught by Professor Prof during the Spring '10 term at Alabama State University.

Ask a homework question - tutors are online