Stanley Clipper,now Retired,owns the Campus Barber Shop

Essay

Stanley Clipper,now retired,owns the Campus Barber Shop.He employs five (5)barbers and pays each a base rate of $500 per month.One of the barbers serves as the manager and receives an extra $300 per month.In addition to the base rate,each barber also receives a commission of $3 per haircut.A barber can do as many as 20 haircuts a day,but the average is 14 haircuts per day.The Campus Barber Shop is a corporation with a 30% tax rate and is open 24 days a month.
Other costs are incurred as follows:
Stanley currently charges $8 per haircut.
Required:
(a)Stanley wants to earn $2,160 in after-tax operating profits.Compute the number of haircuts that must be given to reach this goal in July.
(b)In July,only 1,500 haircuts were given.Compute the price per haircut that Stanley should have charged in July to earn $2,160 in after-tax operating profits.