Need the answers that are in red Problem 221A Vin Diesel ow

Need the answers that are in red !!

Problem 22-1A Vin Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,330 per month. One of the barbers serves as the manager and recelves an extra $540 per month. In addition to the base rate, each barber also recelves a commission of $5.59 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilitles Magazines $250 per month $930 per month $0.35 per haircut $180 per month plus $0.35 per haircut $20 per month Vin currently charges $11.29 per haircut. Your answer is partially correct. Try again. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut 5.94 Total fixed 9,900 Your answer is incorrect. Try again. Compute the break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 1,250.) Break-even point 1,851 haircuts Break-even point 20,898 Your answer is incorrect. Try again. Determine net income, assuming 2,450 haircuts are given in a month. Net income (Loss) 3,208

Solution

Calculate following :

Variable cost per haircut = (5.59+0.35+0.35) = 6.29 per hair cut

Fixed cost = 9900

Compute following :

Break even point = Fixed cost/contribution margin per haircut = 9900/(11.29-6.29) = 1980 Haircut

Break even point = (1980*11.29) = $22354

Compute following :

Net income = Sales-variable cost-fixed cost

= (2450*11.29)-(2450*6.29)-9900

Net income = 2350