Question
Daniel Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base salary of $1,470 per month. One of the barbers
Daniel Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base salary of $1,470 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base salary, each barber also receives a commission of $8.45 per haircut. Other costs are as follows. Advertising $290 per month Rent $920 per month Barber supplies $0.45 per haircut Utilities $190 per month plus $0.10 per haircut Magazines $20 per month Daniel currently charges $15.00 per haircut.
Compute the break-even point in sales units and in sales dollars.
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