Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 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 employees based on expected client traffic. Each of the employees is paid $ per month, with part of their pay coming from client tips. Ruth pays rent and overhead costs of $ 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 $each. She also provides shampoo and conditioner for each client at a cost of $per client. The average price for a haircut is $Ruth pays herself $ per month. What is Ruths contribution margin per haircut?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started