Question
Natalie's Nail Salon has 2 locations: Natalie's Downtown, and Natalie's By-the-Beach. The two salons combined performed 314 pedicures in the first quarter of 2011, and
Natalie's Nail Salon has 2 locations: Natalie's Downtown, and Natalie's By-the-Beach. The two salons combined performed314pedicures in the first quarter of 2011, and395pedicures in the second quarter. Pedicures cost$8.50at both locations. Natalie notices that in Q1,34%of pedicures are performed at By-the-Beach but in Q2,62%of the total were performed there. Natalie's sales goals for Quarter 3 are2.2%growth in each location compared to Quarter 2. Natalie is considering raising pedicures prices to$10.30at both locations in Q3 to increase revenue.
CALCULATED VARIABLES:
q3pedis =404
btbq3pedi =250
monthlygr =0.319(31.9%)
btbgr =1.294(129.4%)
revgrowth =$689
annualgr =1.505(150.5%)
q2gr =0.258(25.8%)
What will be Natalie's pedicure revenue growth rate for Q3 be if she raises prices and meets her sales goals at both locations?
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