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The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,900 per month. The other
The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,900 per month. The other barbers are paid $1,370 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $810 plus 60 cents per haircut; depreciation on equipment $520; barber supplies 40 cents per haircut; utilities $330; and advertising $210. The price of a haircut is $13. (a) Your answer is correct. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) eTextbook and Media Attempts: 1 of 3 used (b) Calculate the break-even point in units and dollars. (d) Determine the operating income, assuming 1,540 haircuts are given in a month. Operating income \$ eTextbook and Media Attempts: 0 of 3 used
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