One of the stylists serves as the manager, receiving an extra $500 per month. In addition to the base salary, each stylist receives a commission of $6 per haircut. Each stylist can do as many as 20 haircuts a day, but the average is 14 haircuts each per day. The Cute Cut Salon is open an average of 24 days per month. Other financial information is as follows: (18 marks) Advertising | $500 per month | Rent | $1,000 per month | Supplies | $1.50 per haircut | Utilities | $300 per month plus $0.50 per haircut | Magazines | $50 per month | Cleaning supplies | $0.25 per haircut | Price per haircut | $15 | a. Compute the fixed costs per month, the variable costs per haircut, the contribution margin and the monthly break-even point for the number of haircuts.
| | 6 | Purchased dry cleaning equipment for $36,000. Paid $14,000 in cash, the remainder to be paid in two weeks. | | 10 | Hired a worker, to be paid $550 per week. | | 17 | Paid the worker's weekly wage. | | 17 | Recorded cash received for services rendered during the week, $5,000.
Production costs for the 15,000 containers needed annually are as follow: Direct materials $35,000 Direct labor 15,000 Unit-related overhead 5,000 Product-sustaining overhead 6,000 Allocated facility-sustaining overhead 14,000 A supplier has offered to provide all 15,000 containers at a price of $4.50 per container. If Whitney, Inc. accepts the offer; it will rent the released space for an annual rental fee of $12,000. Should Whitney, Inc. make or buy the containers? (2 points) Question 6:In addition to selling custom-designed jewelry, Darrah’s Jewelry Store also offers repair and appraisal services. After reading the following profit report, decide whether Darrah’s should drop the appraisal service.
REVIEW Problem: (Chapter 2) Bob Sample opened the Campus Laundromat on September 1, 2012. During the first month of operations, the following transactions occurred. Sept. 1 Bob invested $20,000 cash in the business. 2 The company paid $1,000 cash for store rent for September. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable.
Joe makes $15 per hour and works 40 hours per week. 30-year mortgage interest rate of 6.25% and a monthly payment of $439.00 15-year mortgage interest rate of 5.25% and a monthly payment of $575.00 Down payment: 5% minimum Taxes last year were $375. Insurance is $250 per year. What you are looking for: 1. Can Joe afford the monthly payments with taxes and insurance for either a 30 or 15 year mortgage?
You deposit $16,000 per year for 12 years (deposits at the end of each year) in an account that pays an annual interest rate of 14%. What will your account be worth at the end of 12 years? 11. You plan to borrow $389,000 now and repay it in 25 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments
$24,000 increase D. $11,000 decrease 45. Hylow Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate net operating income of $80,000? A.
Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X? (TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?
Wanda’s Widget Company manufactures widgets. It costs Wanda $1,000 per month for her fixed costs, plus $10 to produce each widget. If Wanda produces w widgets each month, what is the average cost per widget? a) b) c)
By July 2006, according to the official (April 1997) forecast, Oregon will have 14,976 people in its prisons. Also according to the official forecast and analysis, about two-thirds of the increase - 4,438 - stems from Ballot Measure 11. At current rates and standards, it costs $80,000 to $100,000 to construct accommodations for each new prison inmate. Splitting the difference at $90,000 puts the price tag of Ballot Measure 11 construction at almost $400 million. The annual direct costs of operation per prisoner, excluding such indirect costs as administration, medical, and court costs, start at $20,000.