Determine the variable cost per haircut and the total


Question - Telly 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. 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 2,400 haircuts are given in a month.

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Accounting Basics: Determine the variable cost per haircut and the total
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