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

Susan's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Susan's 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 $1270 per month, with part of their pay coming from
client tips. Susan pays rent and overhead costs of $2300 per month on the facility. Because of the quick nature of the service, Susan
doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.65 each. She also
provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $10. Susan pays herself
$5700 per month. What is Susan's contribution margin ratio?
6.0%
78.2%
17.0%
83.0%
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