Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

assist with this. AP-5A LO 4 The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $50 per customer. The salon's fixed costs

assist with this.

image text in transcribed
AP-5A LO 4 The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $50 per customer. The salon's fixed costs are $40,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $20 per customer. Target operating income for the year is $90,000. Required a) Calculate the revenues needed to obtain the target operating income. b) How many haircuts have to be provided to earn an operating income of $80,000? To breakeven? c) Calculate the operating income if 6,000 haircuts are provided. 99

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: William R. Scott, Patricia O'Brien

8th Edition

013416668X, 978-0134166681

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago