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Barbara's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Barbara's offers 15-minute haircuts for harried

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Barbara's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Barbara's 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 doesn't 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 Barbara's contribution margin per haircut? $12.30 $13.50 $12.60 $13.10

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