Have three stylists. Each stylist can accommodate 6 customers per day. The stylists each work 20 days per month.

• Claire also acts as a stylist, but she can only accommodate 4 customers per day since she also serves as the receptionist. However, since it is her business, she works 6 days per week (24 days per month).
• She has estimated, on average, that each customer will generate $32.00 in revenue.
• She estimates that based on her research, it will cost her about $2.50 in supplies per customer/per cut.

Her fixed expenses will include the following each month:

• Advertising $100
• Insurance $50
• Telephone/Internet $50
• Electric $175
• Water $110
• Maintenance $50
• Rent $475
• Salary/Wage Expenses $9,240
• Miscellaneous Expenses $150

Question:

2. What is the maximum number of customers Claire's businesses will serve in one month based on her assumptions? Explain how you arrived at your answer.
4. What is Claire's break-even point for one month? In other words, how many customers must her business serve to cover her expenses? Explain how you arrived at your answer.
6. Prep a projected income statement for one month using the template below.Based on Claire's projections, is this a profitable business idea? Why or why not?

Projected Income Statement Claire's Cuttery Projections for January 20XX
Income
Projected Sales	$
Minus: Cost of Goods Sold
Gross Profit	$
Expenses
Advertising	$
Insurance
Telephone/Internet
Electric
Water
Maintenance
Rent
Salary/Wage Expenses
Miscellaneous Expenses
Total Expenses	$
Net Profit/Loss

Answer rating: 100% (QA)

Maximum number of customers Claires business will serve in one month Each stylist can accommodate 6 ... View the full answer