problem 22.2A

vity of 700 machine hours? By what amount does this c. What electricity cost does the cost equation estimate for a level of activity of 700 By what amount does this differ from June's observed cost for 700 machine hour P22.2A (LO 1, 2, 3, 4) Service Vin Diesel owns the Fredonia Barber Shop. He emplov and pays each a base rate of $1.250 per month. One of the barbers serves as the man an extra $500 per month. In addition to the base rate, each barber also receives a commissie per haircut hop. He employs four barbers as the manager and receives sa commission of $4.50 Other costs are as follows. nse data Advertising Rent Barber supplies Utilities Magazines $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Vin currently charges $10 per haircut. Instructions 1. Determine the variable costs per haircut and the total monthly fixed costs. 1. Compute the break-even point in units and dollars. a CVP graph, assuming a maximum of 1.800 haircuts in a month. Use increment arcuts on the horizontal axis and $3,000 on the vertical axis. 6. Prepare a CVP graph, assu d. Determine net inc me net income, assuming 1.600 haircuts are given in a month