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Trying to figure out the following problem break-even in DOLLARS per HOUR Here is the information: Operation Hair Salon 10 hours 7 days a week

Trying to figure out the following problem break-even in DOLLARS per HOUR

Here is the information:

Operation

Hair Salon

10 hours 7 days a week = (10* 7*52)= 3640 hours open in a year

Fixed Cost

$70,000 Yearly Bldg. Lease

$45,000 Yearly Utilities Cost

$14,000 Marketing Expenses

$55,000 Owner's Yearly Salary

$184,000 Total Fixed Cost

Variable Costs

$0.75 Product used per Customer

12.50 50% Commission to Stylist ($25 * .50)

$13.25 Total Variable Cost

Revenue

$25 Average sale per customer

Here's the information I have already figured out:

$11.75 Contribution Margin ($25-$13.25)

.47 Contribution Ratio

$15660 Break-even in UNITS per YEAR (184,000/(25.00-13.25)

$1305 Break-even in UNITS per MONTH (15660/12)

5 Break-even in UNITS per HOUR (15660/3650)

$391,489 Break-even in DOLLARS per year (184,000/.47)

According to my instructor: Break even Units = annual units/12

$2625 Break-even in DOLLAR per MONTH (1305*25)

According to my instructor: Break even Units = monthly units * selling price per unit

Break-even in DOLLAR per HOUR ????

Not sure if I need to divide the Break even in Units or in DOLLARS /3640 hours open in a year

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