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Edward Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,440 per month. One of the barbers
Edward Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base salary, each barber also receives a commission of $9.15 per haircut. Other costs are as follows. Advertising $240 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $185 per month plus $0.10 per haircut Magazines $35 per month Edward currently charges $16.00 per haircut. (a) Your answer is correct. Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total unit variable cost per haircut $ 9.60 Total fixed costs 7840 eTextbook and Media Attempts: 1 of 5 used (b) Your answer is correct. Compute the break-even point in sales units and in sales dollars. Break-even point 1225 haircuts Break-even point sales $ 19600 eTextbook and Media Attempts: 3 of 5 used (d) Determine net income, assuming 1,570 haircuts are given in a month. Net income $
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