Cullumber Diesel owns the Fredonia Barber Shop. He employs6barbers and pays each a base rate of $1,600per month. One of the barbers serves as the manager and receives an extra $520per month. In addition to the base rate, each barber also receives a commission of $6.00per haircut.

Other costs are as follows.

Advertising$220per monthRent$970per monthBarber supplies$0.49per haircutUtilities$180per month plus $0.31per haircutMagazines$30per month

Cullumber currently charges $12.80per haircut.

(a)

Correct answer icon

Your answer is correct.

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 the Total variable cost per haircut in dollars rounded to 2 decimal places

Total fixed$

enter the total fixed costs in dollars rounded to 2 decimal places

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(b)

Compute the break-even point in units and dollars.

Break-even pointenter the break-even point in units

haircutsBreak even sales

$

enter the break-even point in dollars