The Crazy Hair Salon provides specialoccasion haircuts and generates average revenue of $ per customer. The salons fixed costs are $ per year, which include rent, utilities and magazine subscriptions. Its variable costs are $ per customer. Target operating income for the year is $
Do not enter dollar signs or commas in the input boxes.
a Calculate the revenues needed to obtain the target operating income.
Round the Contribution Margin ratio to decimal places. Round all other answers to the nearest whole number.
CM ratio: Answer
Total CM: $Answer
Revenue: $Answer
b How many haircuts have to be provided to earn an operating income of $ To breakeven?
Round up to the nearest whole unit.
BEP: Answer
Haircuts to yield $: Answer
c Calculate the operating income if haircuts are provided.
Round to the nearest whole number.
Operating Income: $Answer
