Stan loy owns the vista barber shop he employs 5 barbers

Reference no: EM13589884

Stan Loy owns the Vista Barber Shop. He employs 5 barbers and pays each a base rate of $1,400 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.80 per haircut.

Other costs are as follows.

Advertising $240 per month
Rent $960 per month
Barber supplies $0.40 per haircut
Utilities $175 per month plus $0.30 per haircut
Magazines $20 per month
Matt currently charges $11.70 per haircut.

A. Determine the variable cost per haircut and the total monthly fixed cost.

Total variable cost per haircut?

Total Fixed?

B. Compute the break even point in units and dollars

Break even point? ( Haircuts)

Break even point?

C. Determine net income assuring $2400 are given in a month

Net income ?

Reference no: EM13589884

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