Management Accounting
posted by Charlotte Holmes on .
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 per hour and works a 40hour week and a 50week 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 haircuts, the unit price which is $12. Andre has asked you find the following:
1. Determine the annual breakeven point, in the number of haircuts
2. What will be the operating income if 20,000 haircuts are performed?
3.Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual breakeven point (in number of haircuts)?

How do i figure out without knowing how many haircuts were done for the first question