Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$930	per month
Barber supplies		$0.48	per haircut
Utilities		$175	per month plus $0.31 per haircut
Magazines		$30	per month

Vin currently charges $11.65 per haircut.

Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$930	per month
Barber supplies		$0.48	per haircut
Utilities		$175	per month plus $0.31 per haircut
Magazines		$30	per month

Vin currently charges $11.65 per haircut.

Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$930	per month
Barber supplies		$0.48	per haircut
Utilities		$175	per month plus $0.31 per haircut
Magazines		$30	per month

Vin currently charges $11.65 per haircut.Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$930	per month
Barber supplies		$0.48	per haircut
Utilities		$175	per month plus $0.31 per haircut
Magazines		$30	per month

Vin currently charges $11.65 per haircut

Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$930	per month
Barber supplies		$0.48	per haircut
Utilities		$175	per month plus $0.31 per haircut
Magazines		$30	per month

Vin currently charges $11.65 per haircut.

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

(a)

(b)

Compute the break-even point in units and dollars.

(d)

Determine net income, assuming 1,600 haircuts are given in a month.