Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Maria's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Maria's offers 15-minute haircuts for harried
Maria's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Maria'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 $ 1260 per month, with part of their pay coming from client tips, Maria pays rent and overhead costs of $ 2100 per month on the facility. Because of the quick nature of the service, Maria doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $ 0,65 each. She also provides shampoo and conditioner for each client at a cost of $ 1.05 per client. The average price for a haircut is $ 12. Maria pays herself $ 5900 per month. What is Maria's contribution margin per haircut? $ 10,30 $10.00 $10.95 $11.35
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started