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The Peace Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,800 per month. The other

The Peace Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,800 per month. The other barbers are paid $1,330 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $790 plus 60 cents per haircut; depreciation on equipment $510; barber supplies 40 cents per haircut; utilities $350; and advertising $250. The price of a haircut is $13.

(a)

Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.)
Variable cost $

per haircut
Total monthly fixed costs $

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