You want to start a hair salon. This business will have regular monthly fixed expenses of $20,000 for advertising, rent, insurance, utilities administrative overhead, and the lease of equipment and facility. You expect to charge an average customer $90 for a haircut. 50% of this goes to the hair dressers who will work as independent contractors. You expect variable cost of $5 per customer for valet parking and credit card fees. How many customers per month do you need to break even?

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To calculate the breakeven point we need to consider both the fixed costs and variable co... View the full answer