Posted by **Anonymous** on Sunday, August 16, 2009 at 11:17pm.

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 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 haircuts (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.

Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.

Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.

What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.

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 break-even point (in number of haircuts)? Show calculations to support your answer.

For more information on creating Excel Spreadsheets, please visit the Excel Lab

- accounting -
**SraJMcGin**, Monday, August 17, 2009 at 1:57am
So how is it we may specifically help you? We always need that clearly stated. For example, do you want Accounting Tutorials, Excel Lab sites, etc.

Sra

- accounting -
**deanna**, Monday, February 28, 2011 at 12:42pm
please answer and explan all for me

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