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The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $53 per customer. The salons fixed costs are $38,000 per year, which include
The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $53 per customer. The salons fixed costs are $38,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $21.20 per customer. Target operating income for the year is $95,000. 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 $73,000? To break-even? Round up to the nearest whole unit. BEP: Answer Haircuts to yield $73,000: Answer c) Calculate the operating income if 2,800 haircuts are provided. Round to the nearest whole number. Operating Income: $
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