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Charles Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1.410 per month. One of the
Charles Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1.410 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base salary, each barber also receives a commission of $10.30 per haircut. Other costs are as follows. Advertising $230 per month Rent $1,100 per month Barber supplies $0.40 per haircut Utilities $160 per month plus $0.10 per haircut Magazines $30 per month Charles currently charges $18.00 per haircut. (a) Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total unit variable cost per haircut Total fixed costs $
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