Purchase Solution

small business management and break even point

Not what you're looking for?

Ask Custom Question

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)?

Purchase this Solution

Solution Summary

Small business management and break even point

Solution Preview


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 ...

Purchase this Solution

Free BrainMass Quizzes

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.