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Pharoah Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $5.90 per haircut. Other costs are as follows.

Problem 18-2A a-bid (Video) Pharoah Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $5.90 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $280 per month $980 per month $0.38 per haircut $170 per month plus $0.22 per haircut $20 per month Pharoah currently charges $11.50 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut Total fixed LINK TO TEXT LINK TO TEXT VIDEOSIMILAR PROBLEM Compute the break-even point in units and dollars. Break-even point haircuts Break even sales LINK TO TEXT VIDEOI SIMILAR PROBLEM Determine net income, assuming 2,470 haircuts are given in a month. Net income / (Loss) Exercise 18-17 a-d Ivanhoe Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,830 units $50 per unit $35 per unit $16,980 (a) What is the contribution margin ratio? Contribution margin ratio LINK TO TEXT LINK TO TEXT LINK TO TEXT (b) What is the break-even point in dollars? Break-even point $ LINK TO TEXT LINK TO TEXT LINK TO TEXT (c) What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio LINK TO TEXT LINK TO TEXT LINK TO TEXT (d) If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required

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