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Please help me figure out the 1-8 questions of Problem 3 Problem 3: Sidney's Barber Shop in Singapore has five barbers. (Sidney is not one
Please help me figure out the 1-8 questions of Problem 3
Problem 3: Sidney's Barber Shop in Singapore has five barbers. (Sidney is not one of them.) Each barber is paid $6 per hour Depreciation on the store fixtures is 500 annually and depreciation on the equipment is $1,000 annually. Rent is 8500 per month. Assume that the only service performed is the giving of haircuts, the unit price of which is $5. and works a 40-hour week and a 50-week year. 1. Calculate the contribution margin per haireut. 2. Calculate the annual break-even point, in number of haircuts. 3. What will be operating income if 20,000 haircuts are sold? Suppose the landlord decides to revise the monthly rent to $100 + 10% of revenue per haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? 4. Ignore Requirements 3 and 4, and assume that the barbers cease to be paid by the hour but receive a 50% commission for each haircut. What is the new contribution margin per haireut? The annual break-even point (in number of haircuts)? 5Step by Step Solution
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