Question

can u answer all questions using this daya disregard the answers on the second picture. they do not go to this problem just took a pic because i need the same questiins answered

Problem 18-1A (Part Level Submission) Vin Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,350 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.86 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $200 per month $910 per month $0.30 per haircut $170 per month plus $0.30 per haircut $20 per month Vin currently charges $11.46 per haircut.

Answer 1

1.

Total variable cost per haircut:

Barber commission	$5.86
Barber supplies	0.30
Utilities	0.30
Total variable cost per haircut	$6.46

Total fixed costs:

Barber wages ($1,350*6+$530)	$8,630
Advertising	200
Rent	910
Utilities	170
Magazines	20
Total fixed costs	$9,930

Break even points in units = Fixed costs / Contribution per unit

Break even points in units = $9,930 / $5 ($11.46-6.46) = 1,986 units

Break even point in dollars = Fixed costs / Contribution ratio

Break even point in dollars = $9,930 / 43.63% (5/11.46*100) = $22,760

Net income/(loss) = Contribution margin - Fixed costs

Net income/(loss) = $11,600 (2,320*$5) - $9,930 = $1,670