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.

5 questions thank you.

Total Variable Cost

Total Monthly Fixed Cost

Break - Even Point (Units)

Break - Even Point ($)

Net Income