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Problem 2 : D & S , Inc. is a small but prosperous hair cutting salon. Dan Stock, the manager of the salon, has been

Problem 2: D & S, Inc. is a small but prosperous hair cutting salon. Dan Stock, the manager of the salon, has been asked by several clients if she will ever offer other "hair related" services (e.g., perm, dye, etc.). After careful thought, Dan Stock is considering expanding their offerings. However, in order to do so, they will have to hire one additional stylist at a salary of $26,000 per year. Other expenses will increase as follows: rent by 20%, supplies and utilities by 25%, and miscellaneous expenses by 10%. The revenues from additional services are likely to be $55,000 for the next year (i.e.,2024). D & Ss income statement for the most recent year is presented below.D & S, Inc.Income Statement for the Year Ended December 2023Sales Revenue $220,000 Costs: Labor$52,000 Utilities 12,000 Supplies 45,000 Rent 18,000 Miscellaneous 5,000 Manager's Salary 30,000162,000 Operating Profits $58,000 a. Based on your financial analysis, should Dan Stock go ahead with the expansion?b. What other factors must Dan Stock consider before making a final decision?

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