Question
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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