can somebody help me out please ? i really don't understand how to work it out. thanks

Income statement and add or drop- Lakespring retirement village is home to senior citizens who are fairly independent but need assistance with basic health care and occasional meals. Jill Thompson, a licensed beautician, works on salary eighteen hours a week at Lakespring. Funds at the retirement village have been getting tight due to an increase in the number of Medicaid and other low income residents. Carl Jones, Lakesprings administrator, told Thompson that the hair salon might have to be closed. Jones is sympathetic because he knows that it will be inconvenient for many residents to get this service elsewhere, and Thompsons charges are about all the residents can afford, but he wonders how he can keep any unit open that does not break even. Jones is looking for a way to save the hair salon and has provided the following information: Jill is currently doing an average weekly business of 19 haircuts,7 permanents, and 6 brief visits, which take half an hour, an hour and fifteen minutes, respectively. The hair salon is currently allocated rent of $270 per month and other upkeep expenses of $60 a month Thompson is paid $14 per hour.

	haircut	permanents	Brief visits
Charge per resident	$15.00	$25.00	$10.00
Variable costs per service performed (cleaning, styling and setting products)	$2.00	$5.00	$4.50
Variable water expenses	$0.25	$0.35	$0.35
Laundry expenses for towels, smocks, etc	$0.15	$0.35	$0.40

Prepare a monthly income statement and determine the total contribution margined total product margin for each service line. Determine net income for the service taken as a whole .

Should jones close the hair salon? Why or why not?

Should Jones try yo persuade Thompson to drop any service she now offers?