The Yankee Clipper Barber Shop employs five ( 5 ) barbers and pays each a base rate
Question:
The Yankee Clipper Barber Shop employs five barbers and pays each a base rate of $ per month. One of the barbers serves as the manager and receives an extra $ per month. In addition to the base rate, each barber also receives a commission of $ per haircut. A barber can do as many as haircuts a day. The Conner Barber Shop is a corporation with a tax rate and is open days a month.Other costs are incurred as follows: Advertising$ per monthRent$ per monthBarber Supplies$ per haircutUtilities$ per month plus $ per haircutMagazines$ per monthCleaning Supplies$ per haircutConner currently charges $ per haircut.
Required:a Conner wants to earn $ a month in aftertax operating profits. Compute the number of haircuts that must be given to reach this goal for the month of July,
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso