Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,640 per month. One of the barbers serves as the manager and receives an extra $510 per month. In addition to the base rate, each barber also receives a commission of $5.81 per haircut. Other costs are as follows.

Advertising		$200	per month
Rent		$960	per month
Barber supplies		$0.31	per haircut
Utilities		$185	per month plus $0.30 per haircut
Magazines		$30	per month

Vin currently charges $11.42 per haircut.

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

a. Total variable cost per haircut __$$

b. Total Fixed __ $$

2. Compute the break-even point in units and dollars.

a. Break point __ haircuts.

b. Break even point __

3. Determine net income, assuming 2,380 haircuts are given in a month.

a. Net Income/(Loss) __