Booklet 6 Service Costing Solutions.xlsx - 2.96

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Exercise 2.96 Unnamed: 1 Unnamed: 2 Unnamed: 3 SOLUTION
Number of Customers
Monday to Friday 5 days x 5 hours x 2 customers x 4 assistants
200 Customers
Saturday 1 day x 8 hours x 3 customers x 4 assistants
96 Customers
Total (200 Customers x 96 Customers) x 48 weeks
14208 Customers
Snippit Annual Service Cost Statement
£
Wages 61056
Bonus 28416
Shampoo 2841.6000000000004
Refreshments 5683.200000000001
Disposables 1420.8000000000002
Electricity 2534.4
Administration 4000
Rent 10000
Insurance 1500
Repairs and Cleaning 3000
Laundry 2500
Advertising 500
Depreciation 3476
Loan Interest 2000
TOTAL COST 128928
NOTES
Wages Basic £8 x 25 hours x 4 assistants x 48 weeks
38400
Overtime £12 x 8 hours x 4 assistants x 48 weeks
18432
Holiday £8 x 33 hours x 4 assistants x 4 weeks
4224
Total 61056
Bonus 14208 customers x £2
28416
Shampoo 5 bottles x 4 assistants x 48 weeks
960 bottles
960 bottles / 12 bottles
80 cases
80 cases x £35.52
2841.6000000000004
Refreshments 14208 customers x £0.40
5683.200000000001
Disposables 14208 customers x £0.10
1420.8000000000002
Electricity Total Hours ((25x48) + (8x48) x 4 assistants) x £0.40
6336 hours
Total Hours x £0.40
6336 hours x £0.40
2534.4
Depreciation Chairs 10% Reduced Balance
10% x 2880
288
Dryers 10% Reduced Balance
10% x £800
80
Basins 10% Reduced Balance
10% x £580
58
Fittings 25% Straight Line
25% x £12000
3000
Equipment 25% Straight Line
25% x £200
50
Total 3476
Loan Interest 10% x £20000
2000
Operating Cost per Customer
Total Cost / Number of Customers
128928 / 14208
9.074324324324325
9.074324324324325
Price per Customer
Operating Cost per Customer 9.07
Add Profit Margin (20%) 2.2675
Price per Customer 11.3375