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William Diesel owns the Fredonia Barber Shop. He employs5barbers and pays each a base salary of $1,510per month. One of the barbers serves as the
William Diesel owns the Fredonia Barber Shop. He employs5barbers and pays each a base salary of $1,510per month. One of the barbers serves as the manager and receives an extra $580per month. In addition to the base salary, each barber also receives a commission of $8.40per haircut. Other costs are as follows.
Advertising | $300 | per month | |
Rent | $1,020 | per month | |
Barber supplies | $0.45 | per haircut | |
Utilities | $150 | per month plus $0.15per haircut | |
Magazines | $30 | per month |
William currently charges $18.00per haircut.
Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.)
Total unit variable cost per haircut | $enter a dollar amount rounded to 2 decimal places | |
---|---|---|
Total fixed costs |
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