29 Jun Question Vin Diesel owns the Fredonia
Question
Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,510 per month. One of the barbers serves as the manager and receives an extra $550 per month. In addition to the base rate, each barber also receives a commission of $5.61 per haircut.
Advertising$250 per monthRent$960 per monthBarber supplies$0.39 per haircutUtilities$170 per month plus $0.38 per haircutMagazines$25 per month
Vin currently charges $11.38 per haircut.
the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
Total variable cost per haircut$ ___________
Total fixed_________
Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 1,250.)
break even point ___________haircuts
break even point _______$
Determine net income, assuming 2,460 haircuts are given in a month.
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