Cost-Volume-Profit Assignment – Top Universities

Cost-Volume-Profit PROBLEMS: SET A Determine variable and fixed costs, compute break-even pain, prepare a CVP graph, and determine out income P18-1A Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month.

In addition to the base rate, each barber also receives a commission of $4.50 per haircut. Other costs are as follows. L0 1,2.3,41, AN Advertising $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Rent Barber supplies Utilities Magazines Vin currently charges $10 per haircut Instructions

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(a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.

(d) Determine net income, assuming 1,600 haircuts are given in a month. (a) VC 5 P18-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage Prepare a CVP income statement,

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