Southfield Stylers, with three chairs, offers a no-frills hair style service at a single price. The price of $25 and the variable cost of $5 per customer remain constant regardless of volume. The owner can handle additional volume by hiring on-call stylists to staff the two additional chairs if demand is sufficient. Southfield pays the on-call stylists for one full week regardless of actual demand that week. Southfield has three choices every week, as follows:

Required

a. Calculate the break-even point(s).

b. If Southfield Stylers had sufficient demand to keep all chairs busy, should it operate with one, two, or three chairs? Support your answer.

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1 chair..... 2 chairs... 3 chairs..... Weekly Volume Range (Number of Customers) 0-100 101-200 201-300 Total Fixed Costs $2,300 3,600 5,400