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Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,530 per month. One of the barbers
Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,530 per month. One of the barbers serves as the manager and receives an extra $570 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 $270 per month $1,100 per month $0.40 per haircut $190 per month plus $0.25 per haircut $30 per month Cullumber currently charges $15 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, eg. 2.25.) Total variable cost per haircut Totalfixed Compute the break-even point in units and dollars. Break-even point haircuts Break even sales Determine net income, assuming 1,540 haircuts are given in a month. Net income / (Loss)
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