Hairs to You provides special-occasion haircuts and generates average revenue of $71 per customer. The salon’s fixed costs are $41,000 per year, including rent, utilities, and magazine subscriptions. Its variable costs are $35.50 per customer. The Target operating Income for the year is $95,000. 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 2 decimal places. Round all other answers to the nearest whole number. CM ratio: Answer % Required CM:
b) How many haircuts must be provided to earn an operating income of $70,000? To break-even? Round up to the nearest whole unit. BEP: Answer Haircuts to yield $70,000: Answer c) Calculate the operating Income if 3,500 haircuts are provided. Round to the nearest whole number. Operating Income: