Joe Pistone owns a Barber Shop. He employs 2 barbers and pays each a base rate of $1,500 per month. In addition to the base rate, each barber also receives a commission of $9.00 per haircut. Joe charges $20 per haircut. Other costs are:
Compute the break-even point in both units and dollars.
Determine net income assuming 1000 haircuts are given each month.
At 1000 haircuts, compute the margin of safety and the margin of safetypercentage.