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Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,480 per month. One of the barbers
Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,480 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base rate, each barber also receives a commission of $5.35 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $210 per month $1,080 per month $0.40 per haircut $200 per month plus $0.25 per haircut $35 per month $200 Crane currently charges $15 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 e Textbook and Media Compute the break-even point in units and dollars. Break-even point haircuts Break even sales $ e Textbook and Media Determine net income, assuming 1,700 haircuts are given in a month. Net income /(Loss) $ e Textbook and Media
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