Question

Problem 5-2A a-b,d (Video) (Part Level Submission) Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,530 per month. One of the barbers serves as the manager and receives an extra $570 per month. In addition to the base rate, each barber also receives a commission of $5.35 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $270 per month $1,100 per month $0.40 per haircut $190 per month plus $0.25 per haircut $30 per month Cullumber currently charges $15 per haircut. (a) Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircuts Total fixed Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

Answer 1

Total Variable cost

= commission 5.35+ Barber supplies 0.40 + Utilities 0.25

= 6

Total fixed cost

= (5*1530) + 570 + 270 + 1100 + 190 + 30

= 9810

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