Sam's Hair Stylying Salon in Yonkers, NY has five barbers. (Sam is not one of them). Same pays each barber $9.90. The barbers work a 40 hour week and a 50 week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. The variable cost of supplies is $1 per haircut. Assume the only service performed is the giving of haircuts, the unit price of which is $13. (cost structure is the form of: Operating Income=(CMu* Quantity)-Fixed costs )

Cost structure 1: OI=($12*Q)-$120,875

Assume that the barbers cease to be paid by the hour but recieve $7 for each haircut.

Cost structure 2: OI=($5*Q)-$21,875

By refering to the second cost structure, if 20,000 haircuts are performed, at what rate of commission (that is, percentage of selling price) would Sam earn the same operating income as he earned in the first cost structure?