Reference no: EM132770109

Problem 1: Sandra's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sandra's offers 15-minute haircuts with a shampoo for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, Sandra schedules her 6 employees based on expected client traffic. Each of the employees is paid $1270 per month, with part of their pay coming from client tips. Sandra pays rent and overhead costs of $2200 per month for the facility. Because of the quick nature of the service, Sandra 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 $0.90 per client. The average price for a haircut is $14. Sandra pays herself $6000 per month. What are Sandra's fixed costs for the month

Option 1: $13620
Option 2: $9820
Option 3: $11090
Option 4: $15820