Ikram is a hairdresser whose revenue was 10% higher this year than last year when he earned $50,000. He charges $5 per customer and his costs are $2 per customer. His overhead expenses this year are $10,000. He served the same number of customers both years and did not increase prices.
Ikram is a hairdresser whose revenue was 10% higher this year than last year when he earned $50,000. He charges $5 per customer and his costs are $2 per customer. His overhead expenses this year are $10,000. He served the same number of customers both years and did not increase prices.
Ikram is a hairdresser whose revenue was 10% higher this year than last year when he earned $50,000. He charges $5 per customer and his costs are $2 per customer. His overhead expenses this year are $10,000. He served the same number of customers both years and did not increase prices.
Ikram is a hairdresser. His revenue was 10 per cent higher this
year than last year. He earned revenue of $50,000 last year. He charged an average of $5 for each customer last year and has not increased prices. He buys in materials such as shampoo and hairspray and has calculated that the cost is an average of $2 for each customer. He estimates that his overhead expenses are $10,000 this year.
a. Calculate Ikram’s revenue this year. Show your
workings [2] (k) b. Ikram thinks that his profit next year will be higher if he increases his average prices to $6 per customer. Do you agree? Justify your answer (6) (1K, 1App, 2An, 2 Ev)