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Michael Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $ 1,330 per month. One of the
Michael Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $ 1,330 per month. One of the barbers serves as the manager and receives an extra $535 per month. In addition to the base salary, each barber also receives a commission of $5.90 per haircut. Other costs are as follows. Advertising $ 290 per month Rent $ 910 per month Barber supplies $ 0.40 per haircut Utilities $ 175 per month plus $0.20 per haircut Magazines $20 per month Michael currently charges $13.00 per haircut. 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 $ Total fixed costs $ e Textbook and Media Compute the break-even point in sales units and in sales dollars. Break-even point haircuts Break-even point sales $ e Textbook and Media Determine net income, assuming 1,800 haircuts are given in a month. Net income $ e Textbook and Media
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