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The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $54 per customer. The salon's fixed costs are $42, 300 per year, which
The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $54 per customer. The salon's fixed costs are $42, 300 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $22 per customer. Target operating income for the year is $96, 200. Do not enter dollar signs or commas in the input boxes. a) Calculate the revenues needed to obtain the target operating income. Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number. CM ratio: 1% Required CM:$ Revenue: $ b) How many haircuts have to be provided to earn an operating income of $65, 800? To break-even? Round to the nearest whole unit. BEP: Haircuts to yield $65, 800: c) Calculate the operating income if 3, 840 haircuts are provided. Round to the nearest whole number. Operating Income: $
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