Pharoah Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,580 per month. One of the barbers serves as the manager and receives an extra $555 per month. In addition to the base rate, each barber also receives a commission of $6.50 per haircut. Other costs are as follows.

Advertising		$260	per month
Rent		$940	per month
Barber supplies		$0.35	per haircut
Utilities		$180	per month plus $0.15 per haircut
Magazines		$35	per month

Pharoah currently charges $14 per haircut.

(a)

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Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)

Total variable cost per haircut		$ 7
Total fixed		$ 9870

Attempts: 1 of 1 used

(b)

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Compute the break-even point in units and dollars.

Break-even point		1410	haircuts
Break even sales		$	19740

(d)

Determine net income, assuming 1,900 haircuts are given in a month.

Net income / (Loss)

$

**PLEASE ANSWER D**