Sadie owns a hair salon. She gives her hairdressers two options for using her facility, equipment, and salon products: Option 1: they can pay Sadie $5 per haircut plus 20% of their revenue Option 2: they can pay a flat chair rental of $1,000 per month The hairdressers charge their customers $40 per haircut. The hairdressers incur no other expenses. At what point (number of haircuts per month) will the hairdressers be indifferent between the two payment options? OA. 125 O B. 193 O D. 25 OE 77 Because of the poor economic outlook, the hairdressers expect that people will wait longer between haircuts and start cutting their kids hair, rather than bringing them in for a trim. If volume is expected to drop below the indifference point, which payment option will the hairdressers prefer? O A. Option 1 O B. Option 2