The Number of Haircuts Performed Each Day at KwikKuts in the Last

question 48

Essay

The number of haircuts performed each day at KwikKuts in the last four weeks is listed below.
a. Plot the sales data. Do you see both trend and seasonality components in the data?
b. Forecast the number of haircuts to be performed in each workday of week 6.

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating the amount each unit contributes to covering fixed costs and generating profit.

Degree of Operating Leverage

A financial ratio that measures the percentage change in operating income in response to a percentage change in sales.

Forecasted Contribution Margin

An estimated metric that indicates the difference between sales revenue and variable costs of goods sold, used to predict the profitability of sales.