Cullumber Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,570 per month. One of the barbers serves as the manager and receives an extra $525 per month. In addition to the base rate, each barber also receives a commission of $11.40 per haircut. Other costs are as follows. Advertising $240 per month Rent $900 per month Barber supplies $0.45 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Cullumber currently charges $20 per haircut.