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Richard Casper owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,000 per month. One of the barbers
Richard Casper owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $3,930 per month. In addition to the base rate, each barber also receives a commission of $5.70 per haircut. Other costs are as follows. Advertising $170 per month Rent $900 per month Barber supplies $0.40 per haircut Utilities $190 per month plus $0.20 per haircut Magazines $30 per month Richard currently charges $11.00 per haircut. A. Determine the variable cost per haircut and the total monthly fixed costs. (Enter variable cost per unit to 2 decimal places, e.g. 5.87.) B. Compute the break-even point in units and dollars. (Round per unit costs to 2 decimal places, e.g. 5.87 and the answers to 0 decimal places, e.g. 125.) C. Determine net income, assuming 2,810 haircuts are given in a month
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