Question - Vin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,510 per month. One of the barbers serves as the manager and receives an extra $550 per month. In addition to the base rate, each barber also receives a commission of $5.61 per haircut.
Other costs are as follows.
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Advertising
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$250
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per month
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Rent
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$960
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per month
|
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Barber supplies
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$0.39
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per haircut
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|
Utilities
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$170
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per month plus $0.38 per haircut
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Magazines
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$25
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per month
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Vin currently charges $11.38 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs.