Pharoah Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,210 per month. One of the barbers serves as the manager and receives an extra $525 per month. In addition to the base rate, each barber also receives a commission of $6.75 per haircut. Other costs are as follows.

Advertising		$300	per month
Rent		$1,040	per month
Barber supplies		$0.50	per haircut
Utilities		$155	per month plus $0.25 per haircut
Magazines		$15	per month

Pharoah currently charges $15 per haircut.

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 $ Total fixed $ Compute the break-even point in units and dollars. Break-even point haircuts Break even sales Determine net income, assuming 1,520 haircuts are given in a month. Net income / (Loss)