Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cut This and That provides special-occasion haircuts and generates average revenue of $71 per customer. The salons fixed costs are $47,000 per year, which include

Cut This and That provides special-occasion haircuts and generates average revenue of $71 per customer. The salons fixed costs are $47,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $17.75 per customer. Target operating income for the year is $87,000. Do not enter dollar signs or commas in the input boxes. a) Calculate the revenues needed to obtain the target operating income. 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 income of $78,000? To break-even? Round up to the nearest whole unit. BEP: Answer Haircuts to yield $78,000: Answer c) Calculate the operating income if 4,500 haircuts are provided. Round to the nearest whole number. Operating Income: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Managerial Accounting

Authors: Kurt Heisinger

1st Edition

0618436693, 978-0618436699

More Books

Students also viewed these Accounting questions

Question

Salary (if known)

Answered: 1 week ago