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Steph Just Started a Hair Salon Business and Is Working

Question 133

Essay

Steph just started a hair salon business and is working on providing specials for her customers. She offers various services and would like to package some of the services and products she provides at a special bundled price. She is considering two options:
• Option one would allow customers to get their hair colored, cut, styled, and purchase a shampoo and conditioner for $150.
• Option two would provide customers with highlights, a cut, style, shampoo, conditioner, and two styling products of their choosing for $200.
The normal prices that Steph charges a customer, for each product or service, is as follows: Steph just started a hair salon business and is working on providing specials for her customers. She offers various services and would like to package some of the services and products she provides at a special bundled price. She is considering two options: • Option one would allow customers to get their hair colored, cut, styled, and purchase a shampoo and conditioner for $150.  • Option two would provide customers with highlights, a cut, style, shampoo, conditioner, and two styling products of their choosing for $200. The normal prices that Steph charges a customer, for each product or service, is as follows:   Instructions  a.Calculate the allocated price, using the stand-alone method, for option 1 to each service or product provided. (Do not round intermediary calculations. Round the final answers to the nearest cent.) b.Calculate the allocated price, using the stand-alone method, for option 2 to each service or product provided. (Do not round intermediary calculations. Round the final answers to the nearest cent.) c.Which option do you feel provides the best discount to the customers and why? Instructions
a.Calculate the allocated price, using the stand-alone method, for option 1 to each service or product provided. (Do not round intermediary calculations. Round the final answers to the nearest cent.)
b.Calculate the allocated price, using the stand-alone method, for option 2 to each service or product provided. (Do not round intermediary calculations. Round the final answers to the nearest cent.)
c.Which option do you feel provides the best discount to the customers and why?

Correct Answer:

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a. Total transaction price = $90 + $25 +...

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