Essays on Haircut

Activity Based Costing and Process Costing

Contribution margin per unit: Formula = selling price per haircut – total variable cost per haircut Selling price per haircut = $12 Variable cost per haircut = $0.40 Contribution margin per haircut = $12 - $0.40 = $11.60 per haircut

Discussion:

The contribution per unit is $11.60 per haircut, which means that the every haircut is $11.60 towards the profits of the business. Moreover, the portion of fixed cost is very high as compared to the variable costs.

Annual breakeven point in terms of haircuts:

Breakeven point formula = Total fixed cost for the year / Contribution per haircut Labor cost per year = 5 barbers x 40 hours x50 weeks x $9.90 = $99,000 ...

Needless to say, the 21st century provides a challenging situation for working mothers. Women who choose to develop and pursue careers while establishing families with children often find themselves in over their heads. These women are forced to keep up with their professional lives in addition to keeping up with maternal duties that have been set well in advance of the current era. Therefore, the rules that the women of the modern era follow are ones set up by those women who were strictly focused on being a homemaker and mother. Fulfilling the role of one’s career in ...

Myra Morningstar opened UMUC near the college campus in 1995 (Turban and Linda 14). The UMUC Haircut began as a barbershop with only one chairperson. Myra has succeeded in expanding the enterprise over the years to include hair styling for both genders. Currently, the barber has three barber chains, styling and shampoo chains. Myra is responding to her customers’ requests for the addition of two more stations for manicures. In the early business when the start up started, it was the only barbershop within a ten-mile radius and every year the business has been able to get additional customers. Currently, other ...

Introduction:

Myra Morningstar opened up UMUC haircuts around two decades ago, as the only haircut saloon in 10 miles radius. The business flourished with passing time but presently UMUC does not enjoy being the only service in area, as competitors have joined the market. An expensive and big barber outlet is about to open, which raises concerns for UMUC future business. Hence, a business analysis needs to be carried out, aiming at identifying a generic business strategy leading to identify a daily process to be focused upon.

Porter’s Five Forces Model:

Application of Porter’s five forces model will help identifying the major threats to Myra’s ...

Business analysis of UMUC Haircut Company - Stage 1

One of the strategies of UMUC Haircuts is to have a competitive advantage of the customers. An analysis of the company using the Porter’s Give Forces shows that there are some challenges that the company face. The threat of new entrants is a real threat of the company because of the start of a new competitor. This force is high and will impact negatively on the operation of the company. There is a need to ensure that there is proper strategy to counter the force. Supplier power force is low because there is no threat that suppliers of the shaving machines and ...

Business plan

Part 1: Business idea My business idea is a starting barbershop. The name of this barbershop will be JD Barbershop. It will be serving males across all ages. It will be open from 1000hrs to 2100hrs on weekdays and 0800hrs to 2000hrs on weekends.

Essay layout

The layout of this essay will be characterized by several sections based on each question. For question one, the first section will concentrate on the business idea. The other section will have details on Michael Porter’s Competitive Forces. For question two, the first part will be based on the type of the business model ...

Andre has two situations, let us take a look at them:

- Each barber (Total 5 barbers) is paid $9.90 per hour and works 40 hours a week and 50 weeks in a year, regardless of the number of haircuts. - The barbers receive $4 per hour plus $6 for each haircut.

In both the situations the following remain the same:

Situation 1: Contribution Margin allows the company or an individual to determine the profitability of their service or product. To calculate the Contribution Margin we will have to subtract the Variable cost per hair cut form the Price of each Hair cut. The variable costs are the expenses that vary with the quality of the output. They differ ...

The UMUC Haircuts has been serving customers for two decades. During this period, Myra opened six more premises offering similar services in other locations and increased the variety of services. Many other businesses that offer haircut services also established their premises closer to UMUC hence offering competition. Myra, who is the manager, wants to introduce high technology solutions to improve her services. Over time, she was unable to keep contact with her customers and send them birthday wishes. She also was not able to keep track of prices of products of her suppliers. She became desperate for a technological solution ...

Introduction

Since time immemorial, couples aspire to become parents. Parenthood is viewed as many different things to different people, some consider it the happiest time of their lives, some consider it a challenge then there are those couples who consider it a burden placed upon them to teach a lesson or to mature them. The idea that some people who should never be parents actually become parents is very upsetting. Some people become parents way before their time, and their struggle is more than they can handle. There are some couples who want and aspire to become parents, but cannot due to several ...

Abstract

Andrew’s Hair Styling is a hair salon offering only haircuts. This paper evaluates the company’s contribution margin, break-even point, and operating income under two distinct compensation structures. In the first case, barbers are paid only a fixed hourly wage. In the other case, barbers are paid a lower fixed hourly wage together with an incentive payment for each haircut. The business owner is interested in the effects of the revised compensation method on the aforementioned performance indicators. The calculations indicate that, although the revised compensation structure will reduce annual fixed costs by 49%, it will also reduce net operating ...

1. Contribution margin per hair cut performed 2. Number of haircuts for annual breakeven point Breakeven point is the point where the total income from the performed activity equals the total sum of the fixed expenditure per year. In this case, it is the point where the total income from the haircuts equals the total fixed expenditure per year. We must therefore calculate the total expenses per year, which is given as the sum of Barbers expenses per year and other expenses.

Barbers expenses

Total expenses from workers per hour = 5 X 9.9 = $ 49.5

Workers expense per week = ...