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Question

Question
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. 0000 50% 25% 200% 100%

Asked By EmeraldGemini84 at

Answered By Expert

Shaun

Expert · 5.9k answers · 5k people helped

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Answer

D

Explanation

The total fixed costs for the nail salon per month are the sum of rent and supplies, which is 2500 + 500 = 3000. The total revenue from 150 client visits per month is 150 visits * 20 per visit = 3000. Therefore, the salon needs to make 3000 in total to break even. However, the salon also needs to cover the variable costs of the nail technicians, which is 150 visits * 20 per visit = 3000. Therefore, the salon needs to make 3000 + 3000 = 6000 in total to break even. The markup percentage is therefore (6000 - 3000) / 3000 * 100% = 100%.