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Problem 6.40A a-b,d The Peace Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,770 per
Problem 6.40A a-b,d The Peace Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,770 per month. The other barbers are paid $1,300 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $820 plus 60 cents per haircut; depreciation on equipment $490; barber supplies 40 cents per haircut; utilities $360; and advertising $230. The price of a haircut is $13. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost per haircut TA Total monthly fixed costs SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the break-even point in units and dollars. Break-even Point units Break-even Point Determine the operating income, assuming 1,560 haircuts are given in a month. Operating income SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT
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