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Sandhill Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,330 per month. One of the barbers
Sandhill Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,330 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $5.60 per haircut. Other costs are as follows. Advertising Rent $250 per month $930 per month Barber supplies $0.35 per haircut Utilities $180 per month plus $0.35 per haircut Magazines $20 per month Sandhill currently charges $11.30 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 $ Total fixed Compute the break-even point in units and dollars. Break-even point Break even sales $ haircuts Determine net income, assuming 2,450 haircuts are given in a month. Net income/(Loss) $
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