John, now retired, owns the Campus Cutter Barber Shop. He employs five barbers and pays each a
Question:
Other costs are incurred as follows:
Instructions
(a) Calculate the monthly break-even point for the following:
1. Number of haircuts
2. Total sales dollars
3. As a percentage of maximum capacity
(b) In February, 1,500 haircuts were given. Calculate the operating income for February.
(c) If John would like a $4,000 monthly profit, calculate the number of hair cuts that must be given per month to achieve this profit.
(d) In March, 1,600 haircuts were given. Assuming demand is sufficient, would it be possible to give enough haircuts in April to bring the total for the two months combined to the target profit of $4,000 for each month?
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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