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Preparing and Adjusting Profit Equation Assume Strands Salon, a San Diego hair salon, provides haircuts for $ 6 0 . Annual fixed costs are $

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Preparing and Adjusting Profit Equation
Assume Strands Salon, a San Diego hair salon, provides haircuts for $60. Annual fixed costs are $576,000 and the company estimates $15.30 in variable costs per haircut.
REQUIRED
a. Determine the annual profit equation.
b. If the company forecasts that it will provide 21,600 haircuts in the following year, what are estimated profits?
c. How does your answer to part b change if fixed costs are expected to increase by 10% and variable cost per unit are expected to increase by $3.74 per haircut?
Estimated profits: $
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