Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,400 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base rate, each barber also receives a commission of $6.40 per haircut. Other costs are as follows.

Advertising		$260	per month
Rent		$1,060	per month
Barber supplies		$0.50	per haircut
Utilities		$160	per month plus $0.10 per haircut
Magazines		$25	per month

Sheridan currently charges $14 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			haircuts
Break even sales		$

Determine net income, assuming 1,600 haircuts are given in a month.

Net income / (Loss)

$