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- Download: http://solutionzip.com/downloads/andre-hair-styling-solution/
- Andre has asked you to evaluate his business, Andre’s Hair Styling. Andre has five barbers working for him. Andre is not one of them. Each barber is paid $9.90 and hour and works a 40 hour week and a 50 week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is.40 per client. Assume that the only service performed is the giving of hair cuts, the unit price of which is $12. Andre has asked you to find the fallowing information. 1. Find the contribution margin per haircut. Assume that the barbers compensation is a fixed cost. Show calulations to support your answer.2. Determine the annual break even point, in the number of haircuts. Support your answer with an appropriate explination. Show calulations to support your answer.3. What will be the operating income if 20,000 haircuts are performed? Show calulations to support your answer.4. Suppose Andre revises the compensation method. The barbers will recieve $4 per hour plus $6 for each haircut. What is the new contribution margain per haircut? What is the break even?
- Download: http://solutionzip.com/downloads/andre-hair-styling-solution/
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