Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Glam Co is hairdressing salon which provides both cuts and treatments to clientes. All cuts and treatments at the salon are carried out by one

Glam Co is hairdressing salon which provides both "cuts" and "treatments" to clientes. All cuts and treatments at the salon are carried out by one of the salon's 3 senior stylists. The salon also has 2 salon assistants and 2 junior stylists.

Every customer attending the salon is firts seen by a salon assistant, who washes their hair; next by a senior stylist, who cuts or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:

Cut hoursTreatment Hours

Assistant0,10,3

Senior Stylist1,21,8

Junior Stylist0,60,5

The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for each senior stylist, $28,000 each year for each junior stylist and $12,000 each year for each of the assistants. The cost of cleaning products applied when washing the hair is $1.50 per cliente. The cost of all additional products applied during a "treatment" is $7.40 per cliente. Other salon costs (excluding labour and raw materials) amount to $95,000 each year.

Glam Co charges $60 for each cut and $ 120 for each treatment.

The senior stylist time has been correctly identified as the botleneck activity.

What is the annual capacity of the bottleneck activity?

A)Cuts = 7,200h; Treatment = 4,000h

B)Cuts = 6,000h; Treatment = 4,000h

C)Cuts = 4,000h; Treatment = 4,000h

D)Cuts = 7,200h; Treatment = 7,200h

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

Step: 3

blur-text-image

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

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B Weickgenannt, Mary Kay Copeland

4th Edition

1119577810, 9781119577812

More Books

Students also viewed these Accounting questions

Question

please fill in blanks on all photos Transcribed image text

Answered: 1 week ago