PLEASE EXPLAIN YOURSELF

Janice owns the Cute Cut Salon. She employs 5 stylists and pays each a base salary of $1,800 per month. One of the stylists serves as the manager, receiving an extra $500 per month. In addition to the base salary, each stylist receives a commission of $5 per haircut. Each stylist can do as many as 25 haircuts a day, but the average is 17 haircuts each per day. The Cute Cut Salon is open an average of 24 days per month. Other financial information is as follows:

Advertising	$	500	per month
Rent	$	920	per month
Supplies	$	1.80	per haircut
Utilities	$	264	per month plus $0.75 per haircut
Magazines	$	50	per month
Cleaning supplies	$	0.25	per haircut
Price per haircut	$	16

Required:

1.	Compute the monthly break-even point for the following:

a. Number of haircuts. (Do not round intermediate calculations. Round up your answer to the next whole number.) what's the break even sales haircuts? b. Total sales dollars. (Round up "Break-even number of haircuts" to the next whole number. Do not round other intermediate calculations.) What's the break even total sales dollars? c. As a percentage of maximum capacity. (Round your percentage answer to the nearest whole percentage, (i.e., 0.123 should be considered as 12%).) What is the break-even sales (% of capacity) ___ % ? 2. In February, 1,450 haircuts were given. Compute the net income for February. (Do not round intermediate calculations.) what is the net income? 3. If Janice would like a $3,200 monthly profit, compute the number of haircuts that must be given per month to achieve this profit. (Do not round intermediate calculations. Round up your answer to the next whole number.) what is the number of haircuts? 4. In March, 1,550 haircuts were given. Assuming demand is sufficient, would it be possible for stylists to give enough haircuts in April to achieve a monthly average profit equal to the target profit of $3,200? Consider only the two-month period of March and April. Is it possible or not possible ?