Question
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
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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