Question
The Pharoah Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other
The Pharoah Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other barbers are paid $1,320 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $830 plus 60 cents per haircut; depreciation on equipment $510; barber supplies 40 cents per haircut; utilities $350; and advertising $250.The price of a haircut is $13. variable cost = 3 total monthly fixed cost = 7730 break even point = 773 points break even point = $10049 a) Determine the operating income, assuming 1,590 haircuts are given in a month.
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