Problem 18-1A

Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,490 per month. One of the barbers serves as the manager and receives an extra $550 per month. In addition to the base rate, each barber also receives a commission of $5.74 per haircut.

Problem 18-1A Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,490 per month. One of the barbers serves as the manager and receives an extra $550 per month. In addition to the base rate, each barber also receives a commission of $5.74 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $270 per month $990 per month $0.46 per haircut $185 per month plus $0.23 per haircut $20 per month Vin currently charges $11.43 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 0 Total fixed 0 Compute the break-even point in units and dollars. (Round answers to O decimal places, e.g. 1,225.) Break-even point haircuts Break-even points Determine net income, assuming 2,470 haircuts are given in a month. (Round answer to 0 decimal places, e.g. 1,225.) Net income / (Loss)