*Problem 18-1A (Part Level Submission)

Vin Diesel owns the Fredonia Barber Shop. He employs4barbers and pays each a base rate of $1,250per month. One of the barbers serves as the manager and receives an extra $500per month. In addition to the base rate, each barber also receives a commission of $4.50per haircut.

Other costs are as follows.

Advertising$200per monthRent$1,100per month Barber supplies$0.30per haircutUtilities$175per month plus $0.20per haircutMagazines$25per month

Vin currently charges $10per haircut.

*(a)

Your answer is correct. 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$ 5.00

Total fixed$ 7000

*(b)

Your answer is incorrect.Try again. Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 1,225.)

Break-even point 1400

haircuts Break-even point$ 14,000

(d)

Your answer is incorrect.Try again. Determine net income, assuming1,600haircuts are given in a month. (Round answer to 0 decimal places, e.g. 1,225.)

Net income / (Loss)$