Top Posters
Since Sunday
18
s
5
C
4
j
4
s
4
W
3
a
3
H
3
s
3
a
3
o
3
K
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
pixiedust7891 pixiedust7891
wrote...
Go to Answer
Posts: 73
Rep: 0 0
2 months ago
Jenny's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Jenny's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1,200 per month, with part of their pay coming from client tips. Jenny pays rent and overhead costs of $2,000 per month. Because of the quick nature of the service, Jenny doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.55 each. She also provides shampoo and conditioner for each client at a cost of $0.95 per client. The average price for a haircut is $12. Jenny pays herself $5,000 per month. Calculate Jenny's net operating income assuming 1,400 haircuts this month.

▸ $2,900

▸ $3,800

▸ $1,700

▸ $6,500
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 4 times
1 Reply
Replies
Answer verified by a subject expert
madizmmadizm
wrote...
#1
Posts: 64
Rep: 0 0
2 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
$1,700

($12.00 - ($0.95 + $0.55) × 1,400) = $14,700; $14,700 - ((5 × $1,200) + $2,000 + $13,000 = $1,700
1

Related Topics

pixiedust7891 Author
wrote...

2 months ago
This calls for a celebration Person Raising Both Hands in Celebration
vernonb
wrote...

Yesterday
Good timing, thanks!
Lawson1981
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  215 People Browsing
 312 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 403
  
 195
  
 120
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 172
Previous poll results: Do you believe in global warming?