Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your hair care professional has scheduling challenges. She can perform a maximum of sixteen (16) jobs a day. However for five months of the year

Your hair care professional has scheduling challenges. She can perform a maximum of sixteen (16) jobs a day. However for five months of the year she gets on average twenty six (26) jobs and about ten (10) persons have to be turned away daily. For the rest of the year the hair care professional averages eight (8) jobs daily. A friend of hers provided her with a proposal with two options which she is studying. An extract from the proposal is presented below:

Average regular price of hair care: $70

No. of working days per month: 20

Option 2

Proposed rate for low months: $50

Average no. of customers expected daily for peak months: 20

Average no. of customers expected daily for off-peak months: 13

Option 3

Proposed rate for low months: $30

Average no. of customers expected daily for peak months: 16

Average no. of customers expected daily for off-peak months: 15

Based on the above information the hair care professional asked you to calculate the yield of the three options, and advise her.

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

Behavioral Finance And Wealth Management

Authors: Michael M. Pompian

2nd Edition

1118014324, 978-1118014325

More Books

Students also viewed these Finance questions

Question

in writing

Answered: 1 week ago