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Question
Cullumber Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,600 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $6.00 per haircut.
Other costs are as follows.
Advertising$220 per month
Rent$970 per month
Barber supplies$0.49 per haircut
Utilities$180 per month plus $0.31 per haircut
Magazines$30 per month
Cullumber currently charges $12.80 per haircut.
Determine the variable costs per haircut and the total monthly fixed costs.
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