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Maverick Makeup Studio provides makeup for events and generates approximately $50 per customer in revenue. The studio's annual fixed costs are $40,000 including rent, utilities and other costs. Variable costs are $20 per customer. The studio is targeting operating income of $90,000 for the year.
Problem a) Calculate the total sales required to hit the targeting operating income
Problem b) Calculate the number of customers required to breakeven
Problem c) Calculate the number of customers to earn an operating income of $80,000 Show your work to earn partial marks.
Problem ?d) Calculate the operating income if 6,000 customers are provided services. Show your work to earn partial marks.
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