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Solved by verified expert :Problem 19-1A
Telly Savalas owns
the Bonita Barber Shop. He employs 6 barbers and pays each a base rate of \$1,000
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 4.50 per haircut.
Other costs are as
follows.

\$200 per month

Rent

\$1,100 per month

Barber supplies
Utilities
Magazines

\$0.30 per haircut
\$175 per month plus
\$0.40 per haircut
\$25 per month

Telly currently
charges \$10 per haircut.
Determine the
variable cost 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.
1,225.)
Break-even point

haircuts

Break-even point \$
Determine net
income, assuming 1,700 haircuts are given in a month.
Net income \$

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