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solve P18-1A

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PROBLEMS: SET A Determine variable and fixed P18-1A Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 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. costs, compute break-even pain, pepare a CVP graph, and determine mer income L0 1,2,3,41, AN Advertising $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Rent Barber supplies Utilities Magazines Vin currently charges $10 per haircut Instructions (a) Determine the variable costs per haircut and the total monthly fixed costs. (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 incre ments 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. (a) VC $5