Richard Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,570 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base salary, each barber also receives a commission of $9.05 per haircut. Other costs are as follows. Advertising $270 per month Rent $1,060 per month Barber supplies $0.45 per haircut Utilities $195 per month plus $0.10 per haircut Magazines $15 per month Richard currently charges $16.00 per haircut.