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Ikram is a hairdresser. His revenue was 10 percent higher this year than last year. He earned revenue of $50,000 last year. He charged an average of $5 for each customer last year and has not increased prices. He buys in materials such as shampoo and hairspray and has calculated that the cost is an average of $2 for each customer. He estimates that his overhead expenses are $10,000 this year.
a. Calculate Ikram's revenue this year. Show your workings (k)
b. Ikram thinks that his profit next year will be higher if he increases his average prices to $6 per customer. Do you agree? Justify your answer (6) (1K, 1App, 2An, 2 Ev)
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