Richard Casper owns the Fredonia Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows. Advertising $200 per month Rent $900 per month Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magazines $25 per month Matt currently charges $10 per haircut. 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.)

Variable costs $ Total fixed costs $ 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.)

Breakeven point in units _______ haircuts Breakeven point in dollars $ Determine net income, assuming 1,900 haircuts are given in a month.