Other costs are as follows.
Advertising $200 per month
Rent $900 per month
Barber supplies $0.30 per haircut
Utilities $175 per month plus $0.20 per haircut
Magazines $25 per month
Matt currently charges $10 per haircut.
Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income.
(a) Determine the variable cost per haircut and the total monthly fixed costs.
(b) Compute the break-even point in units and dollars.
(d) Determine net income, assuming 1,900 haircuts are given in a month.
This question was asked on May 02, 2010.
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