Telly Savalas owns the Bonita Barber Shop. He employs 6 barbaers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barbers also receives a commission of $5.80 per haircut.

Other costs are as follows.

Advertising $210 per month

Rent $970 per month

Barber supplies $ 0.30 per haircut

Utilities $180 per month plus $0.40 per haircut

Telly currently charges $11.70 per haircut

1. Determine the variable costs per haircut and the total monthly fixed costs.

Total variable cost per cut $_______

Totak fixed $____________

2. Compute the break-even point in dollars and units

Break-even point _____haircuts

Break0even point $_______

3. Determine net income, assuming 2,460 haircuts are given a month.

Net income $________