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SERVICE Problems: Set A P22-1A Stan Loy owns the Vista Barber Shop. He employs five barbers and pays each a base Determine variable and rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 fixed costs, compute per month. In addition to the base rate, each barber also receives a commission of $5.50 per break-even point, pre- haircut. pare a CVP graph, and determine net income. Other costs are as follows (SO 1,3,5,6) 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 Stan currently charges $10 per haircut. 1044 22 Cost-Volume-Profit Instructions (a) Determine the variable cost per haircut and the total monthly fixed costs. (6) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,900 haircuts are given in a month