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# small business management and break even point

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A barber asked me to evaluate his business. He has five barbers working for him. Each barber is paid \$4 per hour plus \$6 for each haircut and works 40hrs week and a 50 week year. Rent and other fixed expenses (\$1,750) per month. What is the contribution margin per haircut? What is the annual break-even point (in number of haircuts)?

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Small business management and break even point

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Hello,

His fixed expenses for the year are \$1750 X 12 = \$21,000. His labor expense for the year is 2000 hours X \$4 X 5 barbers = \$40,000. This makes a total of \$61,000. But whatever he charges per haircut ...

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