Compute the break-even point in units and dollars

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Question - Telly Savalas owns the Bonita Barber Shop. He employs 7 barbers and pays each a base rate of \$1,100 per month. One of the barbers serves as the manager and receives an extra \$550 per month. In addition to the base rate, each barber also receives a commission of \$5.50 per haircut.

Other costs are as follows.

 Advertising \$200 per month Rent \$980 per month Barber supplies \$0.40 per haircut Utilities \$180 per month plus \$0.30 per haircut Magazines \$25 per month

Telly currently charges \$11.40 per haircut.

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

Compute the break-even point in units and dollars.

Determine net income, assuming 2,420 haircuts are given in a month.

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