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The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,890 per month. The other
The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,890 per month. The other barbers are paid $1,300 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $780 plus 60 cents per haircut; depreciation on equipment $510; barber supplies 40 cents per haircut; utilities $320; and advertising $210. The price of a haircut is $13. (a) Your answer is incorrect. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.)
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