Alonzo owns a barber where he employs five barbers and pays each a base rate of P2000 per month. One of the barbers acts as the manager and receives an extra P3000 per month. In addition to the base rate, each barber is paid a commission of P20 per haircut. A barber can do a average of 6 haircuts a day. The barber shop is open 24 days a month. Other cost incurred are as follows:

Advertising P 1000 per month

Rent 4000 per month

Barber Supplies 400 per month

Utilities 1750 per month and 25 per haircut

Magazines 250 per month

Cleaning Supplies 15 per haircut

Currently Alonzo charges P100 per haircut

Requirement

1. Compute the break-even in a) number of haircuts and in b) total pesos

2. In March, 1400 haircuts were given, compute the net income

3. Alonzo wants a net income of P25,000, compute the number of haircuts that must be given

4. If Alonzo wants a net income of P40,000, and 1,500 haircuts were given, how much must be the amount charge per haircut.