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  3. cullumber diesel owns the fredonia barber shop. he

Cullumber Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a...

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Accounting

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Cullumber Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,200 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base rate, each barber also receives a commission of $6.10 per haircut. Other costs are as follows. Advertising $270 per month Rent $970 per month Barber supplies $0.40 per haircut Utilities $175 per month plus $0.10 per haircut Magazines $20 per month Cullumber currently charges $12 per haircut. Instructions (a) Determine the variable costs per haircut and the total monthly fixed costs. (a) VC $5 (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month

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