Question
The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $69 per customer. The salons fixed costs are $52,000 per year, which include
The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $69 per customer. The salons fixed costs are $52,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $34.50 per customer. Target operating income for the year is $96,000.
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 $67,000? To break-even? Round up to the nearest whole unit. BEP: Answer Haircuts to yield $67,000: Answer c) Calculate the operating income if 4,300 haircuts are provided. Round to the nearest whole number. Operating Income: $Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started