Explore BrainMass

Explore BrainMass

    small business management and break even point

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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)?

    © BrainMass Inc. brainmass.com December 24, 2021, 5:00 pm ad1c9bdddf
    https://brainmass.com/business/business-management/21590

    Solution Preview

    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 ...

    Solution Summary

    Small business management and break even point

    $2.49

    ADVERTISEMENT