32. Consider Appendix D and identify

a) the four most profitable procedures in terms of contribution margin per hour worked per customer. Note: contribution margin = price-cost

b) The four least profitable procedures?

c) Consider the procedures in a) and b): Which is the most profitable segment (consider children, teens, working age males, working age females, senior women, senior men and special events)?

d) The least profitable?

Appendix D: Types of Services and Prices for Robin Michele Salon's Services Per Customer 0.6 # of procs/yr 11 11 11 11 11 11 11 11 4 Types of Customers Procedures Children - boys basic cut Children - girls basic cut Young Males - teens basic cut Young Females - teens basic cut Males 20-60's basic cut dyes - color Females 20-60's cuts dyes - color highlights + 7 cuts/yr waxing add-on waxing separate $2 Prices $15 $15 $16 $25 $16 $30 $25 $45 $85 $10 $15 Time Costs (hr) $2 0.6 $2 $2 0.66 $2 1 0.66 $5 1 $2 1 $5 2 $10 3 Senior Men >60 Senior Women >60 basic cut cuts dyes - color highlights + 7 cuts /yr perms +8 cuts per/yr 11 11 11 4 3 $16 $25 $45 $85 $55 $2 $2 $5 $10 $9 0.66 1 2 3 3 IN Additional Opportunities Wedding Party Funerals Home Visits styling styling cuts Procedures Per Event 6 $40 $5 1 1 $35 $20 1 1 $80 $20 4 List developed by authors and Robin