Question

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

Answer 1

The correct answer is B.

Step-by-step 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.