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Margaret's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Margaret's offers 1 5 - minute

Margaret's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Margaret's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1200 per month, with part of their pay coming from client tips. Margaret pays rent and overhead costs of $2100 per month on the facility. Because of the quick nature of the service, Margaret doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.70 each. She also provides shampoo and conditioner for each client at a cost of $0.90 per client. The average price for a haircut is $14. Margaret pays herself $5900 per month. What is Margaret's contribution margin per haircut?
$12.40
$12.10
$13.10
$3.30
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