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Telly Savalas owns the Bonita Barber Shop. He employs 7 barbers and pays each a base rate of $1,500 per month. One of the barbers
Telly Savalas owns the Bonita Barber Shop. He employs 7 barbers and pays each a base rate of $1,500 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $5.80 per haircut. Other costs are as follows: Advertising $280 per month Rent $930 per month Barber supplies $0.40 per haircut Utilities $180 per month plus $0.30 per haircut Magazines $30 per month Telly currently charges $11.70 per haircut. Determine the variable cost 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. (Do not round any intermediate calculations and round only answers to 0 decimal places, e.g.1, 225.) Break-even point haircuts Break-even point $ Determine net income, assuming 2,490 haircuts are given in a month. Net income $
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