MANAGERIAL ACCOUNTING INDIVIDUAL PROJECT FOR PROF ELUID P ONLY
Consider the forthcoming scenario:
Andre has asked you to evaluate his trade, Andre’s Hair Styling. Andre has five barbers instituted for him. (Andre is not one of them.) Each barber is hired $9.90 per hour and works a 40-hour week and a 50-week year, inconsiderate of the compute of haircuts. Rent and other urban expenses are $1,750 per month. Hair shampoo used on all clients is $0.40 per client. Assume that the simply benefit executed is the giving of haircuts (including shampoo), the individual expense of which is $12. Andre has asked you to experience the forthcoming notice.
Find the gift edge per haircut. Assume that the barbers' satisfaction is a urban require. Show calculations to foundation your counter-argument.
Determine the annual break-even aim, in compute of haircuts. Foundation your counter-argument delay an expend description. Show calculations to foundation your counter-argument.
What procure be the munificent proceeds if 20,000 haircuts are executed? Show calculations to foundation your counter-argument.
Suppose Andre revises the satisfaction arrangement. The barbers procure admit $4 per hour plus $6 for each haircut. What is the new gift edge per haircut? What is the annual break-even aim (in compute of haircuts)? Show calculations to foundation your counter-argument.
Using the notice supposing, furnish a memo to Andre teaching the completed separation and how he should use this notice to instructor the operations of the barber treasure. The memo should teach the require associated delay the barber treasure including their relationships.