Cost Volume Profit Practice Problem Chattanooga Barber Shop's owner Mike is working on his accounting and budgeting for the year. He employs four barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $4.00 per haircut. Other costs are as follows. Advertising $200 per month Rent \$1,400 per month Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magarines $25 per month Mike currently charges $15 per haircut. 1. Warialle costs per lialreut 2. Total monthly fixed costs 3. Break-even point in units and break-even point in dollars 4. Net income, assuming 1,200 haircuts are piven in a month 5. Margin of Safety in dollars if the 1,200 hairent revenues is the actual or expected revenues 6. Margh of Saloty Ratio if the 1,200 haircut revennes is the actual or expected rovenues 7. Required sales units and revennes in dollars if a target net income or $7,500 is desired