Question
Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,300 per month. One of the barbers
Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,300 per month. One of the barbers serves as the manager and receives an extra $540 per month. In addition to the base rate, each barber also receives a commission of $5.60 per haircut. Other costs are as follows.
Advertising | $290 | per month | |
Rent | $910 | per month | |
Barber supplies | $0.39 | per haircut | |
Utilities | $180 | per month plus $0.21 per haircut | |
Magazines | $20 | per month |
Cullumber currently charges $10.20 per haircut.Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
Total variable cost per haircut | $enter a dollar amount rounded to 2 decimal places | |
---|---|---|
Total fixed | $enter a dollar amount |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started