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Cut This and That provides special - occasion haircuts and generates average revenue of $ 6 5 per customer. The salon s fixed costs are

Cut This and That provides special-occasion haircuts and generates average revenue of $65 per customer. The salons fixed costs are $53,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $16.25 per customer. Target operating profit for the year is $92,000.
Do not enter dollar signs or commas in the input boxes.
a) Calculate the revenues needed to obtain the target operating profit.
Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number.
CM ratio: Answer
%
Required CM: $Answer
Revenue: $Answer
b) How many haircuts have to be provided to earn an operating profit of $74,000? To break-even?
Round up to the nearest whole unit.
BEP: Answer
Haircuts to yield $74,000: Answer
c) Calculate the operating profit if 3,400 haircuts are provided.
Round to the nearest whole number.
Operating Profit: $Answer

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