Question
Vin Diesel owns the Riverbed Barber Shop. He employs 7 barbers and pays each a base rate of $1,640 per month. One of the barbers
Vin Diesel owns the Riverbed Barber Shop. He employs 7 barbers and pays each a base rate of $1,640 per month. One of the barbers serves as the manager and receives an extra $510 per month. In addition to the base rate, each barber also receives a commission of $4.50 per haircut. Other costs are as follows. Advertising $200 per month Rent $960 per month Barber supplies $0.30 per haircut Utilities $185 per month plus $0.20 per haircut Magazines $30 per month Vin currently charges $10.00 per haircut.
a. Total variable cost per haircut
b. total fixed
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