Accounting Principles Homework Problems Chapter 22 1. Quick Cuts is a haircut shop. It employs five barbers and pay each a base salary of $800 per month. One of the barbers serves as a manager and receives an additional $1,000 per month for this position. In addition to the base salary each barber receives a commission of $5.50 per haircut. Other costs to run the shop are: Rent Advertising Utilities Barber supplies Magazines $1,200 per month $300 per month $250 per month plus $0.40 per haircut $0.35 per haircut $40 per month Quick Cuts charges $15 per haircut. Instructions a. Determine the variable costs per haircut and the total monthly fixed costs. b. Calculate the break-even point in units and dollars. C. Determine net income for a month assuming 1,800 haircuts