P22-1A Stan Loy owns the Vista Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, cach barber also receives a commission of $5.50 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines Stan currently charges $10 per haircut. $200 per month $900 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month A Instructions (a) Determine the variable cost 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 1,900 haircuts are given in a month.

P22-1A Stan Loy owns the Vista Barber Shop. He employs five barbers and pays each a base rate of $1,000 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 $5.50per haircul. Other costs are as follows. Stan currently charges $10 per haircut. Instructions (a) Determine the variable cost 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 1,900 haircuts are given in a month