A hairstyling salon constructed a flexible budget projecting $1,000$ and $1,100$ customers for the month of June. The owner expects $1,000$ customers but hopes for $1,100$ customers. Average sale per customer is $$40.$ Costs include rent of $$5,000$; payments to hairstylists of $$20$ per customer, and overhead of $$10$ per customer. In June, the salon had $1,050$ customers, and the net income was $$8,000.$

What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results?

$$ 

A hairstyling salon owner constructed a flexible budget projecting $1,000$ and $1,100$ customers for the month of June. The owner expects $1,000$ customers but hopes for $1,100$ customers. Average sale per customer is $$40$ Costs include rent of $$5,000$: payments to hairstylists of $520$ per customer, and overhead of $$10$ per customer. In June, the owner had $1,100$ customers; the revenue was $$46,000$; and the net income was $$8,000.$

What will the owner find concerning the revenue or income variances?

$$ 

Answer rating: 100% (QA)

The net income variance is the difference between the actual net income and the budge... View the full answer