# Accounting - cost accounting problem solve

**Tutor description**

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

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