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need accounting homework due tomorrow

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must be completely original work;Consider the following scenario;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 $0.40 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.;Individual Project Rubric

 

Paper#74943 | Written in 18-Jul-2015

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