Question
The Wildhorse Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,790 per month. The other
The Wildhorse Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,790 per month. The other barbers are paid $1,360 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 $500; barber supplies 40 cents per haircut; utilities $340; and advertising $200. 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 | $enter a dollar amount per haircut rounded to 2 decimal places | per haircut | |
---|---|---|---|
Total monthly fixed costs | $enter a dollar amount |
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