a nail salon pays $2500 in rent per month and each nail technicians get paid $20 per client visit. supplies…

a nail salon pays $2500 in rent per month and each nail technicians get paid $20 per client visit. supplies cost $500 per month. at 150 client visits per month, how much does the salon have to mark up each visit, percentage - wise, for to break even at the end of the month.

a nail salon pays $2500 in rent per month and each nail technicians get paid $20 per client visit. supplies cost $500 per month. at 150 client visits per month, how much does the salon have to mark up each visit, percentage - wise, for to break even at the end of the month.

Answer

Explanation:

Step1: Calculate total fixed - costs

The rent is $2500 and supplies cost $500. So the total fixed costs per month $C_f=2500 + 500=3000$.

Step2: Calculate current revenue from client visits

Each technician is paid $20 per client visit and there are 150 client visits. So the current cost for client - visits $C_{cv}=20\times150 = 3000$.

Step3: Calculate total cost

The total cost $C = C_f+C_{cv}=3000 + 3000=6000$.

Step4: Calculate current revenue

The current revenue from client visits is $R_{current}=3000$.

Step5: Calculate the required revenue per client visit to break - even

The total cost is $6000$ and there are 150 client visits. So the required revenue per client visit $r=\frac{6000}{150}=40$.

Step6: Calculate the percentage markup

The current cost per client visit is $20$. The formula for percentage markup $M=\frac{r - 20}{20}\times100%$. Substitute $r = 40$ into the formula: $M=\frac{40 - 20}{20}\times100%=100%$.

Answer:

100%