Solved

Susan Has a Children Hair Salon in Toronto

Question 121

Essay

Susan has a children hair salon in Toronto.She pays $70,000 per year rent and utilities.She hires a part time assistant and pay her $35,000 a year.On average, she uses $5 worth of material for each child haircut.Her rate is $20 per child and receives on average 20% tip.A)How many clients per month does she need to have to breakeven? B)If she increases the price to $25 and receives 15% tip, how many client she should have to make $80,000 profit a year?

Correct Answer:

verifed

Verified

A)Fixed costs = $70,000 + $35,000 = $105...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents