Question: I need help with the answer and an explanation. Sandhill Diesel owns the Fredonia Barber Shop. He employs5barbers and pays each a base rate of
I need help with the answer and an explanation.
Sandhill Diesel owns the Fredonia Barber Shop. He employs5barbers and pays each a base rate of $1,430per month. One of the barbers serves as the manager and receives an extra $600per month. In addition to the base rate, each barber also receives a commission of $6.00per haircut.
Other costs are as follows.
Advertising$260per month Rent$1,000per month Barber supplies$0.50per haircut Utilities$150per month plus $0.10per haircut Magazines$20per month
Sandhill currently charges $12per haircut.
Compute the break-even point in units and dollars.
Break-even point ____ haircuts
Break even sales $_____
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