Planning and Budgeting

For any line of products it is principal(prenominal) that the owner or bus understand the way in which the be are net up and how a wampum can be made. In order to assess the barricade even point and potentiality profits the different types of be need to be assessed. in that location are daimon types of equals, those that are the same no return what level of business or production is undertaken, much(prenominal) as rent, these have to be paid even if there is no production. The second type of cost is the variable cost; this is the be that will variable subject in the production, the control inputs into the production. For the neatens this is the lave, the lave is only used when there is active revenue production. (Horngren, Sundem, Stratton, 2005)The delay stage is to assess the theatrical role level per haircut. This performer triumphal the revenue that is gained and then deducting the direct (variable) costs. This is shown in figure 1 below. depict 1. Contribution Margin. gross per hair cut (a)12.00Cost of shampoo (b)0.40Contribution (a-b) (c)11.60As a % ((c/a) x 100))96.67%This means that it costs $.40 per haircut and as such the remaining $11.60 can be used to pay faithlessly the fixed costs, after the fixed costs are masking this will provide the profit. The donation is $11.60. With this we can now progeny at the Break tear down Point.

We are given cardinal fixed costs, staff profit and the rent. These need to be await as annual costs. Figure 2. Staff engages as an yearbook Fixed Cost. Wage per hour (a)9.90Hours per week per groom (b)40Wages per week (a x b) (c)396.00Weeks per class (d)50Wage per barber per year (c x d) (e)19,800.00Number of barbers (f)5Wages per year (e x f)99,000.00Figure 3. Annual Rent. Monthly (a)1750Annually (a x 12)21000These... If you wish for to get a wide of the mark essay, order it on our website: Ordercustompaper.com

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