P18.2A (LO 1, 2, 3, 4), AN Service Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $4.50 per haircut. Other costs are as follows. Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Advertising Rent Barber supplies Utilities Magazines $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Vin currently charges $10 per haircut. Instructions a. VC $5 a. Determine the variable costs per haircut and the total monthly fixed costs. b. Compute the break-even point in units and dollars. c. Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. d. Determine net income, assuming 1,600 haircuts are given in a month