Problem 18-1A (Part Level Submission)

Vin Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,380 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 $5.55 per haircut. Other costs are as follows.

Advertising		$230	per month
Rent		$990	per month
Barber supplies		$0.38	per haircut
Utilities		$175	per month plus $0.22 per haircut
Magazines		$25	per month

Vin currently charges $11.15 per haircut.

(a)

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		$
Total fixed		$