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Question - Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,370 per month. One of the barbers serves as the manager and receives an extra $530 per month. In addition to the base rate, each barber also receives a commission of $5.84 per haircut.
Other costs are as follows.
Advertising $250 per month
Rent $960 per month
Barber supplies $0.44 per haircut
Utilities $170 per month plus $0.37 per haircut
Magazines $25 per month
Vin currently charges $11.65 per haircut.
Find the variable costs per haircut and the total monthly fixed costs?
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