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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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