B C Harry's Haircuts charges $20 per haircut. 1 2 They incur the following costs: 3. Three barbers earn a base salary of $700 a month each 17 One of the barbers acts as manager earning $350 more per month The barbers earn a commission of $5 per haircut 5 5 Rent is $12,000 a year 2 B 9 1 Barber supplies are $1.25 per haircut Utilities average $300 a month and $0.25 per haircut H K Harry has several sports magazine subscriptions that total $360 a year Instructions: a) Determine the UVC per haircut and TFC per month (4 marks) 2 3 b) Calculate the breakeven point in dollars (2 marks) 4 c) Determine operating income if 400 haircuts are given in a month (5 marks) 5 d) What is the margin of safety ratio (2 marks) 6 e) How could Harry change the company's cost structure to be more sensitive to changes in sales (1 mark) 7