Barbaras Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Barbaras offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $ 1220 per month, with part of their pay coming from client tips. Barbara pays rent and overhead costs of $ 2400 per month on the facility. Because of the quick nature of the service, Barbara doesnt have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $ 0.50 each. She also provides shampoo and conditioner for each client at a cost of $ 0.90 per client. The average price for a haircut is $ 14. Barbara pays herself $ 5700 per month. What is Barbaras contribution margin ratio?

11.1%

86.6%

90.0%

10.0%