=+Jas Milatic knows that utility costs are rising. Jas wants to increase revenues to cover at least

Question:

=+Jas Milatic knows that utility costs are rising. Jas wants to increase revenues to cover at least some part of rising utility costs, so Jas tells each of the managers to find a way to increase productivity in the salons so that the stylists will pay more to the salons. Jas does not want to increase the rental fee above 10% of revenue for fear the stylists will leave, and each salon has only 10 stations, so he feels each salon cannot hire more than 10 full-time stylists.

The manager of Hair Suite I attacks the problem by simply telling the stylists that, from now on, customers will be scheduled for 40 minute appointments and breaks will be five minutes. This will allow each stylist to add one more customer per day.

The manager of Hair Suite II asks the stylists on a voluntary basis to work one extra hour per day, from 10 am to 7 pm, to add an additional customer per stylist per day.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

Question Posted: