The Crazy Hair Salon provides special occasion haircuts and generates average revenue of $60 per customer....
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The Crazy Hair Salon provides special occasion haircuts and generates average revenue of $60 per customer. The salon's fixed costs are $45,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $21.00 per customer. Target operating profit for the year is $100,000. Do not enter dollar signs or commas in the input boxes. a) Calculate the revenues needed to obtain the target operating profit. Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number. CM ratio: Required CM: S Revenue: $ b) How many haircuts have to be provided to earn an operating profit of $63,000? To break-even? Round up to the nearest whole unit. BEP % Haircuts to yield $63,000 c) Calculate the operating profit if 3,000 haircuts are provided. Round to the nearest whole number. Operating Profit S The Crazy Hair Salon provides special occasion haircuts and generates average revenue of $60 per customer. The salon's fixed costs are $45,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $21.00 per customer. Target operating profit for the year is $100,000. Do not enter dollar signs or commas in the input boxes. a) Calculate the revenues needed to obtain the target operating profit. Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number. CM ratio: Required CM: S Revenue: $ b) How many haircuts have to be provided to earn an operating profit of $63,000? To break-even? Round up to the nearest whole unit. BEP % Haircuts to yield $63,000 c) Calculate the operating profit if 3,000 haircuts are provided. Round to the nearest whole number. Operating Profit S
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Answer a Contribution margin ratio Selling price Variable cost Selling ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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