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Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,500 per month. One of the barbers
Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,500 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $5.77 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $230 per month 5980 per month $0.36 per haircut $170 per month plus $0.30 per haircut 530 per month Vin currently charges $11.43 per haircut. Determine the variable costs 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. (Round answers to 0 decimal places, e.g. 1,250.) Break-even point Break-even point haircuts Determine net income, assuming 2,500 haircuts are given in a month. Net income (Loss)
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