Question
Vin Diesel owns the Fredonia Barber Shop. He employs7barbers and pays each a base rate of $1,470per month. One of the barbers serves as the
Vin Diesel owns the Fredonia Barber Shop. He employs7barbers and pays each a base rate of $1,470per month. One of the barbers serves as the manager and receives an extra $530per month. In addition to the base rate, each barber also receives a commission of $5.64per haircut.
Other costs are as follows.
Advertising $310per month
Rent $930per month
Barber supplies $0.34per haircut
Utilities $175per month plus $0.21per haircut
Magazines $20per month
Vin currently charges $11.19per haircut.
Compute the break-even point in units and dollars.(Round answers to 0 decimal places, e.g. 1,225.)
Break-even point ________ haircuts
Break even point $________
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