Crane 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 $560 per month. In addition to the base rate, each barber also receives a commission of $5.85 per haircut. Other costs are as follows.

Advertising		$300	per month
Rent		$950	per month
Barber supplies		$0.50	per haircut
Utilities		$170	per month plus $0.15 per haircut
Magazines		$30	per month

Crane currently charges $13 per haircut.

(a)

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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 total variable cost per haircut amount in dollars rounded to 2 decimal places
Total fixed		$enter the total fixed costs in dollars

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(b)

Compute the break-even point in units and dollars.

Break-even point		enter the break even point in units for number of haircuts	haircuts
Break even sales		$enter the break even sales in dollars

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(d)

determine net income assuming 2,000 haircuts are given in a month.

Net Income/Loss ????????