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:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q116: Explain what motivates firms to enter price
Q117: Predatory pricing, although representative of a form
Q118: It is illegal to charge a different
Q119: In any given market, the firm that
Q120: Leader pricing is an illegal attempt to
Q122: Ben wants to open a restaurant in
Q123: Meg wants to start a gym in
Q124: Differentiate between horizontal price fixing and vertical
Q125: Ryan owns a store that sells shoes
Q126: A company manufactures tires that are sold
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