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?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q125: Hruska Tax Consulting provides several services. A
Q126: Raspberries R Us has two operating units
Q127: Eagle Distributing has three operating units and
Q128: Aim Industries manufactures framers for large trucks
Q129: Becky Hansen is the manager of American
Q130: Carpet Plus has outgrown its current building
Q131: The Medina Street Vault is a little
Q132: The local meat locker processes a variety
Q134: Olsson Consulting Services has three divisions and
Q135: Thelma and Louise operate businesses in downtown
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents