Determining the net income

Reference no: EM13130943

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:

A. Compute the break-even point in both units and dollars.

B. Determine net income assuming 1000 haircuts are given each month.

C. At 1000 haircuts, compute the margin of safety and the margin of safety percentage.

Reference no: EM13130943

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