Problem Ch.18 - P18-1A Matt Reiss owns the Fredonia Barber...

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P18-1A Matt Reiss owns the Fredonia Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the 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 are as follows. $200 per month $900 per month Barber supplies $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Matt currently charges $10 per haircut. Hint: Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. (SO 1 , 3 , 5 , 6 ) Instructions (a) Determine the variable cost per haircut and the total monthl VC $6 (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircu of 300 haircuts on the horizontal axis and $3,000 on the ver (d) Determine net income, assuming 1,900 haircuts are given in
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P18-2A Utech Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2010, management estimates the following revenues and costs. $1,800,000 Selling expenses—variable 430,000 Selling expenses—fixed 352,000 Administrative expenses— variable Manufacturing overhead— 316,000 Administrative expenses— fixed Manufacturing overhead—
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This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Problem Ch.18 - P18-1A Matt Reiss owns the Fredonia Barber...

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