Reference no: EM133044239

Question - Pretty Me Limited is a beauty therapy company which specializes in beauty care services. The firm employs 10 beauticians who work throughout the year but are given 10 days of annual leave, and 10 days of sick leave. Staff work 8 hours a day, 5 days a week. Pretty Me offers the following services: pedicure, manicure and facial. Pedicure takes 1 hour and is charged at $20 an hour. Manicure takes 2 hours and is charged at $25 an hour. Facial takes 3 hours and is charged at $30 an hour. There is also a combo deal of all three services together which takes 5 hours and the total charge is $160. The beauticians spend 20% time performing pedicures, 30% time performing manicures, 40% time performing facials and the rest is spent on Combo deals.

Required -

a) Calculate the total annual hours spent performing each type of service.

b) How many of each type of service are currently been performed?

c) How much does the firm charge per service?

d) How much revenue is earned annually in each service and in total?

e) The following year, it is forecasted to employ an additional 5 beauticians and operate 6 days a week. Further, the price for Combo deal is to be reduced to $140 which should result in 20% of the time spent on Combo deals while facial will reduce to 30%. Prepare the revenue budget for the following year.