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Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,410 per month. One of the barbers

Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,410 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base rate, each barber also receives a commission of $10.30 per haircut. Other costs are as follows.

Advertising

$230 per month

Rent

$1,100 per month

Barber supplies

$0.40 per haircut

Utilities

$160 per month plus $0.10 per haircut

Magazines

$30 per month

Sunland currently charges $18 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

$enter a total variable cost per haircut amount in dollars rounded to 2 decimal places

Total fixed

$enter the total fixed costs in dollars

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