Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $66 per customer. The salon's fixed costs are $42,000 per year, which include

image text in transcribed

image text in transcribed

The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $66 per customer. The salon's fixed costs are $42,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $16.50 per customer. Target operating income for the year is $102,000. 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. b) How many haircuts have to be provided to earn an operating income of $66,000 ? To break-even? Round up to the nearest whole unit. BEP: Haircuts to yield $66,000 : c) Calculate the operating income if 2,900 haircuts are provided. Round to the nearest whole number. BEP: Haircuts to yield $66,000 : c) Calculate the operating income if 2,900 haircuts are provided. Round to the nearest whole number. Operating Income

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_2

Step: 3

blur-text-image_3

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

Eco Management And Audit Scheme

Authors: Gerardus Blokdyk

3rd Edition

0655169709, 978-0655169703

More Books

Students also viewed these Accounting questions

Question

Prepare a physical DFD based on the output from Short Problem.

Answered: 1 week ago