Henriettas House of Hair does 10,000 haircuts per year. The average price is $30. The stylist gets 20% of the price and other variable costs are $7 per cut. Fixed costs per year are $80,000.

a) Prepare a detailed contribution margin (CVP) income statement in good format

b) New scenario: Henrietta believes she can do 14,000 cuts per year by adding $50,000 in advertising and increasing stylists pay to 30% of the $30. Is this a good idea? Prove your answer with a CVP income statement.