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Wildhorse Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,560 per month. One of the barbers
Wildhorse Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,560 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 $5.90 per haircut. Other costs are as follows.
Advertising | $250 | per month | |
Rent | $990 | per month | |
Barber supplies | $0.40 | per haircut | |
Utilities | $170 | per month plus $0.20 per haircut | |
Magazines | $20 | per month |
Wildhorse currently charges $11.50 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs.
Total variable cost per haircut |
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Total fixed |
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