scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 368
Andres Hair Stylling employs 5 barbers at 990 per hour 40 hours per week and 50 weeks per year The salary rate applies regardless of the number of haircuts performed by the barber Fixed expenses total 1750 per month and the cost for shampoo per client is 040 The total cost for each hair cut is 1200 Using this data I found the following information 1 Contribution margin is sales revenue less variable costs It is the amount available to pay for fixed costs and provide any profit after variable costs have been paid Wikipedia 2006 Find the contribution margin per haircut Unit sales price - unit variable cost contribution margin 1200 Per cut - 040shampoo contribution margin 1160 contribution margin 2 The break even point is the level of sales at which revenue equals expenses and net income is zero Horngren 2005 A break even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product as opposed to attempting to modify an existing product instead so it can be made lucrative Determine the break even point Break-Even Point in Units Total Fixed Costs Contribution Margin per Unit Break-even point in Units 21000 rent yearly 99000 salaries yearly 1160 Break even point in Units 10345 haircuts 3 Operating income is a measure of a companys earning power from ongoing operations equal to earnings before deduction of interest payments and income taxes The operating income for 20000 haircuts Revenues - variable costs - fixed costs operating income 20000 haircuts x 12 240000 040 shampoo x 20000 8000 1750 rent x 12 months 21000 50 weeks x 990hour x 40 hours x 5 barbers 99000 240000 - 8000 - 99000 - 21000 91000 operating income 4 Compensation method revised Barbers will receive 4 per hour plus 6 for each
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA