(d) Determine net income, assuming 1,800 haircuts are given in a month. Net income $ Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
icon
Related questions
Question
(d)
Determine net income, assuming 1,800 haircuts are given in a month.
Net income
$
Transcribed Image Text:(d) Determine net income, assuming 1,800 haircuts are given in a month. Net income $
Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the
barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a
commission of $8.50 per haircut.
Other costs are as follows.
Advertising
$250
per month
Rent
$1,100
per month
Barber supplies
$0.35
per haircut
Utilities
$150 per month plus $0.15 per haircut
Magazines
$35
per month
Kevin currently charges $15.00 per haircut.
Transcribed Image Text:Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning