Consider the following scenario:

 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.
Using the information  provided, provide a memo to Andre explaining the completed analysis and  how he should use this information to monitor the operations of the  barber shop.  The memo should explain the cost associated with the  barber shop including their relationships.