916 18 Cost-Volume-Profit PROBLEMS: SET A un1 in Dicid owns the Prdonla Bter shne mpop four hrberm anedr and Determine variable and fixed P18-1A Vin Diesel owns the Fredonia Barber Shop. He emp costs, compute break-even point, prepare a CVP graph, and determine net income. base rate of $1,250 per month. One of the barbers receives an extra $500 per month. In addition to the base ra commission of $4.50 per haircut. rate, each barber also receives a (LO 1, 2, 3, 4), AN Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Vin currently charges $10 per haircut Instructions (a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use incre- a) VC $5 ments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month