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##### Problem 19-1A - Telly Savalas owns the Bonita Barber Shop

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Question;Problem 19-1ATelly Savalas owns the Bonita Barber Shop. He employs 6 barbers and pays each a base rate of \$1,200 per month. One of the barbers serves as the manager and receives an extra \$540 per month. In addition to the base rate, each barber also receives a commission of \$5.70 per haircut.Other costs are as follows.Advertising\$250 per monthRent\$990 per monthBarber suppliesUtilitiesMagazines\$0.50 per haircut\$175 per month plus \$0.40 per haircut\$30 per monthTelly currently charges \$11.80 per haircut.Determine the variable cost per haircut and the total monthly fixed costs. (Round variable costs to 2 decimalplaces, e.g. 2.25.)Total variable cost per haircut \$Total fixed\$Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 1,225.)Break-even pointhaircutsBreak-even point \$Determine net income, assuming 2,400 haircuts are given in a month.Net income \$

Paper#43880 | Written in 18-Jul-2015

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