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Vin Diesel owns Furious Barber Shop. He employs four barbers and pays each a base rate of $2,250 per month. One of the barbers
Vin Diesel owns Furious Barber Shop. He employs four barbers and pays each a base rate of $2,250 per month. One of the barbers serves as the manager and receives an extra $1,500 per month. In addition to the base rate, each barber also receives a commission of $20 per haircut. Other costs are as follows. Advertising Rent Supplies Utilities Magazines $1,500/month; $2.50/haircut $3,500/month $7.50/haircut $500/month;$2/haircut $100/month Vin currently charges $75 per haircut. A. Determine the variable costs per haircut and the total monthly fixed costs. B. Compute the break-even point in units and dollars. C. Determine net income, assuming 550 haircuts are given in a month.
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