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The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,750 per month. The other
The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,750 per month. The other barbers are paid $1,300 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $780 plus 60 cents per haircut; depreciation on equipment $480; barber supplies 40 cents per haircut; utilities $290; and advertising $190. The price of a haircut is $13.
Determine the operating income, assuming 1,500 haircuts are given in a month.
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