Determine the variable costs per haircut

Reference no: EM132083186

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.

Reference no: EM132083186

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