Fernando Chavez owns the FC Barber Shop, which is a one-man shop (owned by Fernando and he is the only employee). with the following information for FC Barber Shop's August operations, please calculate (A) unit contribution margin and prepare (B) a contribution margin income statement.

Break-even point transactions

cost information	cost
advertising	$100 per month
rent	$1,000 per month
barber supplies	$1.00 per haircut
utilities	$150 per month plus $0.50 per haircut
wages	$500 per month plus $6.00 per haircut
price of haircut	$30 per haircut
number of haircuts provided	150 haircuts

(A) Unit contribution Margin

unit contribution margin

$22.50

(B) Contribution margin income statement

sales	$4,500
variable costs	$1,125
contribution margin	$3,375
fixed costs	$1,750
net income	$1,625

How did they find the fixed cost ($1,750) and net income ($1,625)?