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Volgvan
3 years ago
5

Sadie owns a hair salon. She gives her hairdressers two options for using her​ facility, equipment, and salon​ products: Option​

1: they can pay Sadie​ $5 per haircut plus​ 20% of their revenue Option​ 2: they can pay a flat chair rental of​ $1,000 per month The hairdressers charge their customers ​$40 per haircut. The hairdressers incur no other expenses. At what point​ (number of haircuts per​ month) will the hairdressers be indifferent between the two payment​ options? (A) 25 (B) 77 (C) 193 (D) 125 (E) 111
Business
1 answer:
Sonja [21]3 years ago
8 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Option​ 1: they can pay Sadie​ $5 per haircut plus​ 20% of their revenue.

Option​ 2: they can pay a flat chair rental of​ $1,000 per month.

The hairdressers charge their customers ​$40 per haircut.

Option1= 5*cut + 8*cut= $13 per cut

Option 2= $1000

1000= 13x

77=x

77 haircuts.

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Answer:

See below.

Explanation:

Total Variable over head variance = Spending variance + Efficiency variance

Total Spending variance = VOH - SVOR × AH

Total Efficiency variance = SVOR * ( AH - SH)

Assuming we only want total spending variance then option A is correct, however if we assume total overhead variance is required option E would be correct as we also need to account for the efficiency variance of overhead as per the difference between actual and standard hours worked.

Hope that helps.

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4 years ago
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Explanation:

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On July 31 of the current year, Dome Co. issued $1,000,000 of 10%, 15-year bonds at par and used a por­tion of the proceeds to c
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3 years ago
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