arponatsdWT

2022-11-30

Natalie's Nail Salon has 2 locations: Natalie's Downtown, and Natalie's By-the-Beach. The two salons combined performed 320 pedicures in the first quarter of 2011, and 400 pedicures in the second quarter. Pedicures cost $8.50 at both locations in Q1 and Q2. Natalie notices that in Q1, 30% of pedicures are performed at By-the-Beach but in Q2, 55% of the total were performed there. Natalie's sales goals for Quarter 3 are 6% growth in each location compared to Quarter 2. Natalie is considering raising pedicures prices to$11 at both locations in Q3 to increase revenue.
What was the overall pedicure growth rate from Q1 to Q2?

Garagozzodgc

Solution:
Number of pedicures in Quarter 1 (Q1) = 320 pedicures
Number of pedicures in Quarter 2 (Q2) = 400 pedicures
The overall pedicure growth rate from Q1 to Q2 is calculated as,
Overall pedicure growth rate $=\left[\frac{\text{Number of pedicures in Q2}-\text{Number of pedicures in Q1}}{\text{Number of pedicures in Q1}}\right]×100$
Overall pedicure growth rate $=\left[\frac{\left(400-320\right)}{320}\right]×100$
Overall pedicure growth rate = 25%

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