Question

A stylist charges $20.00 per haircut. The total cost for running her home-based business is $4,000.00 per month, which includes her salary of $3,000.00 per month. To cover all these expenses and her salary, she must do a minimum of 200 haircuts per month.

Because the cost of living has gone up, she wants to increase her salary to $3,500, making her total monthly expenses $4,500.00

What is the minimum price she must charge for each of the 200 haircuts so she can cover this increased salary?

Answer 1

Answer: The minimum price she must charge for each of the 200 haircuts is ( $22.50 )

Explanation:

I had this same question on my test.

Answer 2

$22.50

Explanation:

New minimum price = x

Cost = 4,500 = 200*x

x = 4500/200 = 22.50