Question: Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,570 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 $5.90 per haircut. Other costs are as follows. Advertising $310 per month Rent $920 per month Barber supplies $0.44 per haircut Utilities $180 per month plus $0.30 per haircut Magazines $20 per month Vin currently charges $11.64 per haircut. Collapse question part
(a) 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 ? $
(b) Compute the break-even point in units and dollars.