Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to. All cuts and treatments at the salon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists. Every client attending the salon is first seen by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats their hair depending on which service the client wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows
The salon is open for eight hours each day for six days per week. It is only
closed for two weeks each year. Staff salaries are $40,000 each year for each senior stylist, $28,000 each year for each junior stylist and $12,000 each year for each of the assistants. The cost of cleaning products applied when washing clients’ hair is $1·50 per client. The cost of all additional products applied during a ‘treatment’ is $7·40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year. Glam Co charges $60 for each cut and $110 for each treatment. The senior stylists’ time has been correctly identified as the bottleneck activity. The salon has calculated the cost per hour to be $42·56.
What is the throughput accounting ratio (TPAR) for both
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