Steven Diesel owns the Fredonia Barber Shop. He employs barbers and pays each a base salary of $ per month. One of the barbers serves as the manager and receives an extra $ per month. In addition to the base salary, each barber also receives a commission of $ per haircut.
Other costs are as follows.
tableAdvertising$per monthRent$per monthBarber supplies,$per haircutUtilities$per month plus $ per haircutMagazines$per month
Steven currently charges $ per haircut.
Determine the unit variable costs per haircut and the total monthly fixed costs. Round variable costs to decimal places, eg
Total unit variable cost per haircut $
Total fixed costs
Compute the breakeven point in sales units and in sales dollars
Determine the net income, assuming haircuts are given in a month
$
