SEE IMAGE ATTACHED for costs.

Stanley Clipper owns the Campus Barber Shop. He employs five $(5)$ barbers and pays each a base rate of $$500$ per month. One of the barbers serves

as the manager and receives an extra $$300$ per month. In addition to the base rate, each barber also receives a commission of $$3$ per haircut.

Other costs are incurred as follows:

Stanley currently charges $$8$ per haircut. There is a $30\%$ tax rate.

What is the amount of variable costs? $($HINT: Unit of activity is "haircut"$)$

$$6\mathrm{.}80$

$$12\mathrm{.}40$

$$4\mathrm{.}40$

Other $($Provide answer$)$