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 $61 per customer. The salons fixed costs are $41,000 per year, which include

The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $61 per customer. The salons fixed costs are $41,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $15.25 per customer. Target operating income for the year is $89,000. 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. CM ratio: Answer % Required CM: $Answer Revenue: $Answer b) How many haircuts have to be provided to earn an operating income of $80,000? To break-even? Round up to the nearest whole unit. BEP: Answer Haircuts to yield $80,000: Answer c) Calculate the operating income if 2,800 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

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

Accounting Principles Volume 1 And Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

1119786649, 978-1119786641

More Books

Students also viewed these Accounting questions

Question

What methods do communication scholars use to conduct research?

Answered: 1 week ago