Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how to solve it Take me to the text Hairs to You provides special-occasion haircuts and generates average revenue of $76 per customer. The salon's

image text in transcribed

how to solve it

Take me to the text Hairs to You provides special-occasion haircuts and generates average revenue of $76 per customer. The salon's fixed costs are $53,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $19.00 per customer. Target operating profit for the year is $100,000. 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: % Required CM: Revenue: b) How many haircuts have to be provided to earn an operating profit of $75,000 ? To break-even? Round up to the nearest whole unit. BEP Haircuts to yield $75,000 : c) Calculate the operating profit if 4,000 haircuts are provided. Round to the nearest whole number. Operating Profit

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

Certificate Of Cloud Auditing Knowledge Study Guide

Authors: Isaca

1st Edition

1604208619, 978-1604208610

More Books

Students also viewed these Accounting questions

Question

What advice would you provide to Jennifer?

Answered: 1 week ago