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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.
Advertising
$250
per month
Rent
$960
Barber supplies
$0.39
per haircut
Utilities
$170
per month plus $0.38 per haircut
Magazines
$25
Vin currently charges $11.38 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs.
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