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(a) Your answer is incorrect. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost Total monthly fixed costs $ $ per haircut

(a) Your answer is incorrect. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost Total monthly fixed costs $ $ per haircut

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,890 per month. The other barbers are paid $1,300 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $780 plus 60 cents per haircut; depreciation on equipment $510; barber supplies 40 cents per haircut; utilities $320; and advertising $210. The price of a haircut is $13. (a) Your answer is incorrect. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost Total monthly fixed costs $ per haircut
Transcribed Image Text:The Blossom Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,890 per month. The other barbers are paid $1,300 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $780 plus 60 cents per haircut; depreciation on equipment $510; barber supplies 40 cents per haircut; utilities $320; and advertising $210. The price of a haircut is $13. (a) Your answer is incorrect. Determine the variable cost per haircut and the total monthly fixed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost Total monthly fixed costs $ per haircut
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