=+10-41 KKK Human aspects of budgeting in a service firm OBJECTIVE 6 Jas Milatic owns three upscale hair salons: Hair Suite I, II and III. Each of the salons has a manager and 10 stylists who rent space in the salons as independent contractors and who pay a fee of 10% of each week’s revenue to the salon as rent. In exchange, they get to use the facility and utilities but must bring their own equipment.

The manager of each salon schedules each customer appointment to last an hour, and then allows the stylist 10 minutes between appointments to clean up, rest and prepare for the next appointment. The salons are open from 10 am to 6 pm, so each stylist can serve seven customers per day. Stylists each work five days a week on a staggered schedule, so the salon is open seven days a week. Everyone works on Saturdays, but some stylists have Sunday and Monday off, some have Tuesday and Wednesday off and some have Thursday and Friday off.