Transformations Hair Salon uses an activity-based costing system to determine the cost of services. The salon has determined the costs of services by activity as follows: 
a.Using the information provided, determine the cost of services for each of the following services provided by the salon:
b..If the company budgets 10,000 haircuts, 4,000 complete styles, 3,500 perms, and 5,500 highlights, determine the budget for cost of services.
Definitions:
Net Profit Margin
A financial ratio representing the percentage of net income to sales revenue, indicating how much of each dollar earned by the company is translated into profits.
Return on Assets
A ratio indicating how efficiently a company is using its assets to generate profit, calculated as net income divided by total assets.
Earnings Per Share
A metric that divides a company's profit available to its common stockholders by the average outstanding shares.
Debt-to-Equity
A metric illustrating the comparative levels of a company's debt and shareholder equity utilized in asset financing.
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