Compute the break-even point in units and dollars. Break-even point enter the Break-even point in units haircuts Break even sales $enter the Break-even sales in dollars

SheridanDiesel owns the Fredonia Barber Shop. He employs4barbers and pays each a base rate of $1,400per month. One of the barbers serves as the manager and receives an extra $560per month. In addition to the base rate, each barber also receives a commission of $6.40per haircut.

Other costs are as follows.

Advertising$260per monthRent$1,060per monthBarber supplies$0.50per haircutUtilities$160per month plus $0.10per haircutMagazines$25per month

Sheridancurrently charges $14per haircut.

(a)

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$

enter a dollar amount rounded to 2 decimal places

Total fixed$

enter a dollar amount

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dheeraj.isinghalAnswered19 minutes ago

Total variable cost per haircut= $7

Total fixed =$7665

Explanation:

Total variable cost= Commission+ Barber supplies+ Additional utilities

= 6.40+ 0.50+ 0.10

= 7.00

Total monthly fixed cost= Wages+ Rent+ Magazine+ Utilities+ Advertisement

= ((1400* 4)+ 560)+ 1060+ 25+ 160+ 260

= 7665