Problem Ch.18

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

This preview shows pages 1–3. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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—
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

### Page1 / 6

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online