How do calculate the breakeven point in units and dollars

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Reference no: EM13111271

The peace barber shop hires four barbers. One barber who as well serves as the manager is paid a salary of $1,800 per month. The other barbers are paid 1,300 per month. In addition each barber is paid a commission of $4 per haircut. Other monthly costs are- store rent $800 plus 60 cents per haircut, depreciation on equipment $500, barber supplies 40 cents per haircut utilities $300, as well as advertising $ 200. The price of a haircut is $11.
Instructions
(1) How can define the variable cost per haircut and the total monthly fixed cost?
(2) How do calculate the breakeven point in units and dollars
(3)How do conclude the net income, assuming 1500 are given in a month?

Reference no: EM13111271

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