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Ruth's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Ruth s offers 1 5 -

Ruth's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Ruths offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1250 per month, with part of their pay coming from client tips. Ruth pays rent and overhead costs of $2100 per month on the facility. Because of the quick nature of the service, Ruth doesnt have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.75each. She also provides shampoo and conditioner for each client at a cost of $0.95per client. The average price for a haircut is $10.Ruth pays herself $6000 per month. What is Ruths contribution margin per haircut?

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