Question
You run a nail salon. Fixed monthly cost is $5,591.00 for rent and Utlities, $6,103.00 is spent in salaries and $1,584.00 in insurance. Also every
You run a nail salon. Fixed monthly cost is $5,591.00 for rent and Utlities, $6,103.00 is spent in salaries and $1,584.00 in insurance. Also every customer requires approximately $3.00 in supplies. You charge $91.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent and utilties will increase to $10,018.00, salaries to $6,275.00 and insurance to $2,375.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $166.00 per service. What is the PROFIT or Loss at the crossover point?
Answer format: Number: Round to: 2 decimal places.
I have calculated a loss for location 1 to be -6597.48 and location 2 to be -6597.52. Please confirm. It says roud to two decimal places, but each of these are different when rounded to 2 decimal places. Which one is correct?
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