Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- Style Inc. is a hair care studio that specializes in haircuts and entertainment. During a haircut, the customer receives a beverage of their choosing

image text in transcribed

- Style Inc. is a hair care studio that specializes in haircuts and entertainment. During a haircut, the customer receives a beverage of their choosing and watches television or chooses to listen to music. Style Inc. is working on understanding its costs and has created the following list of costs for you. You can ignore tips in this analysis because Style Inc. does not allow its customers to tip the hair stylist; ignore any other costs that are not mentioned here. Each haircut costs the customer $60 Style Inc. pays its employees $20 per haircut . The subscription to the television service customers watch during their haircut is $250/month Beverages cost $2/each, and every customer gets a beverage during their haircut The rent on the studio is $1,000/month . The manager of the studio earns a fixed fee of $2,000/month Question: How many haircuts does Style Inc. need to do in a month to break even? Please show your answer rounded to the nearest unit (although rounding up is the most accurate)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Mike Tayles, Colin Drury

11th Edition

147377361X, 978-1473773615

More Books

Students also viewed these Accounting questions