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Linda's Cutting Station offers a new concept in haircuts; low cost and very quick. Set...

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Accounting

Linda's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Linda'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 $1270 per month, with part of their pay coming from client tips. Linda pays rent and overhead costs of $2300 per month on the facility. Because of the quick nature of the service, Linda doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.75 each. She also provides shampoo and conditioner for each client at a cost of $1.10 per client. The average price for a haircut is $12. Linda pays herself $5800 per month. What is Linda's contribution margin per haircut?
$9.85
$10.90
$11.25
$10.15
Attempts: 0 of 1 used
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