Question
You are the manager of a hair salon and want to know how many ladies haircuts your salon needs to sell in a month in
You are the manager of a hair salon and want to know how many ladies’ haircuts your salon needs to sell in a month in order to cover the fixed costs of running the salon. You have determined that, at the current price of $35 per haircut, you have $20 in variable costs associated with each cut. These variable costs include stylist wages, hair product, and shop supplies. Your fixed costs are $3,000 per month. You perform a break-even analysis on a per-unit basis and discover the following:
You have 4 stylists plus yourself working in the salon and are open 6 days per week. Considering the break-even point and the number of available stylists, will the salon ever break even? If it does, what will need to happen? What can be done to achieve the break-even point?
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Employment Law for Human Resource Practice
Authors: David J. Walsh
4th edition
1111972192, 978-1133710820, 1133710824, 978-1111972196
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