Victoria Hair Salon styles hair in three operations- washing, cutting.setting, and drying-and charges $25 per styling.(each styling is one "unit"). Vicotria styles hair on a walk-in basis and does not take appointments; customers who face a wait walk across the street to another salon. Victoria's owners find it has a cutting/setting bottleneck on Saturdays due to a limited number of stylists. The bottleneck exists for a total of eight hours each Saturday.

Pertinent information follows:

Hourly Capacity: Washing 30 units, Cutting/Setting 12 units, Drying 15 units.

Saturday Capacity (8 hours): Washing 240 units, Cutting/Setting 96 units, Drying 120 units.

Actual Saturday production: Washing 96 units, Cutting/Setting 96 units, Drying 96 units.

Each hair styling has variable costs of $10. Victoria's output is constrained by the 96 units of cutting/setting capacity. Two options exist that can relieve the bottleneck at cutting/setting operation. Consider the differential costs associated with each of the following options to determine the impact on throughput.

Option1: Victoria can increase bottleneck output by hiring one nonstylist employee to prepare customers for cutting/setting by washing and combing their hair. This would increase the cutting/setting capacity to 120 each Saturday. The cost for this additional employee is $100 per Saturday.

Option 2: Victoria could hire another stylist for each Saturday, increasing the cutting/setting capacity to 108 each Saturday and costing an additional $200 per Saturday. (Note that the drying operation has a capacity of 120).

Should Victoria's owner go ahead with either of the two options? Why or why not? Show work.