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Calculate revenues needed to obtain target operating income

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Reference no: EM132500612

APSA The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of SSO per customer. The salon's fixed costs are $40,000 per year, which include rent, utilities and magazine subscriptions. Its a• able costs are S20 per customer. Target operating income for the year is $90,000.

Required

Question 1: Calculate the revenues needed to obtain the target operating income.

Question 2: How man haircuts have to be provided to earn an operating income of $80,000? To breakeven?

Question 3: Calculate the operating Income if 6,000 haircuts are provided.

Reference no: EM132500612

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