Carla Vista Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows.

Advertising		$210	per month
Rent		$920	per month
Barber supplies		$0.46	per haircut
Utilities		$180	per month plus $0.34 per haircut
Magazines		$30	per month

Carla Vista currently charges $12.30 per haircut.

Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)

Total variable cost per haircut		$
Total fixed		$

Compute the break-even point in units and dollars.

Break-even point			haircuts
Break even sales		$

Determine net income, assuming 2,330 haircuts are given in a month.

Net income / (Loss)

$