Question
The Ivanhoe Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other
The Ivanhoe Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 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 $810 plus 60 cents per haircut; depreciation on equipment $540, barber supplies 40 cents per haircut; utilities $370, and advertising $250. The price of a haircut is $13. (a) Your answer is partially correct. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, eg. 15.25 Variable cost Total monthly fixed costs 2990 per haircut
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