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DenverMade DenverMade
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A year ago
Jenny's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Jenny's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1,200 per month, with part of their pay coming from client tips. Jenny pays rent and overhead costs of $2,000 per month on the facility. Because of the quick nature of the service, Jenny doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.55 each. She also provides shampoo and conditioner for each client at a cost of $0.95 per client. The average price for a haircut is $12. Jenny pays herself $5,000 per month. What is Jenny's contribution margin per haircut?

▸ $10.50

▸ $11.45

▸ $10.20

▸ $11.05
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Managerial Accounting

Managerial Accounting


Edition: 4th
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wonton1wonton1
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A year ago
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DenverMade Author
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A year ago
This calls for a celebration Person Raising Both Hands in Celebration
AlahuKakpar
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Good timing, thanks!
nicolepope23
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2 hours ago
Helped a lot
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