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Need help! Patricia's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Patricia's offers 15-mir haircuts
Need help! Patricia's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Patricia's offers 15-mir haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quick schedules her 5 employees based on expected client traffic. Each of the employees is paid $ 1210 per month, with part of the coming from client tips. Patricia pays rent and overhead costs of $ 2300 per month on the facility. Because of the quick nature the service, Patricia doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost 0.60 each. She also provides shampoo and conditioner for each client at a cost of $0.95 per client. The average price for a hair $ 12. Patricia pays herself $ 5400 per month. What is Patricia's contribution margin per haircut? $11.05 $ 10.45 O $11.40 O $ 10.15
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