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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 $
Preparing and Adjusting Profit Equation
Assume Strands Salon, a San Diego hair salon, provides haircuts for $ Annual fixed costs are $ and the company estimates $ in variable costs per haircut.
REQUIRED
a Determine the annual profit equation.
b If the company forecasts that it will provide 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 and variable cost per unit are expected to increase by $ per haircut?
Estimated profits: $
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