P22-1A

PROBLEMS: SET A Determine variable and fixed P22-1A Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and puu costs, compute break-even each a base rate of $1,250 per month. One of the barbers serves as the manager and point, prepare a CVP graph, receives an extra $500 per month. In addition to the base rate, each barber also receives a and determine net income.commission of $4.50 per haircut. (LO 1, 2, 3, 4) Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Vin currently charges $10 per haircut. Instructions (a) VC $5 (a) Determine the variable costs per haircut and the total monthly fixed co (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a ments of 300 haircuts on the horizontal axis and $3,000 on the verticd of 1,800 haircuts in a month. Use incre (d) Determine net income, assuming 1,600 haircuts are aiven in a mont