Cullumber Diesel owns the Fredonia Barber Shop. He employs7barbers and pays each a base rate of $1,370per month. One of the barbers serves as the manager and receives an extra $500per month. In addition to the base rate, each barber also receives a commission of $6.00per haircut.

Other costs are as follows.

Advertising$200per month

Rent$930per month

Barber supplies$0.48per haircut

Utilities$175per month plus $0.32per haircut

Magazines$30per month

Cullumber currently charges $11.80per 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 $

Compute the break-even point in units and dollars.

Break-even point haircuts

Break even sales $

Determine net income, assuming 2,490 haircuts are given in a month.

Net income / (Loss) $