Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut. (a) Determine the unit 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 haircut Total fixed costs $
Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut. (a) Determine the unit 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 haircut Total fixed costs $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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![Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the
barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a
commission of $8.50 per haircut.
Other costs are as follows.
Advertising
$250
per month
Rent
$1,100
per month
Barber supplies
$0.35
per haircut
Utilities
$150
per month plus $0.15 per haircut
Magazines
$35
per month
Kevin currently charges $15.00 per haircut.
(a)
Determine the unit 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 haircut
Total fixed costs
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb70d429b-ee28-46c5-9470-7f7258185c42%2F95e82649-56fc-4e9d-80a9-571a8860b3e1%2F1rohv0j_processed.png&w=3840&q=75)
Transcribed Image Text:Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the
barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a
commission of $8.50 per haircut.
Other costs are as follows.
Advertising
$250
per month
Rent
$1,100
per month
Barber supplies
$0.35
per haircut
Utilities
$150
per month plus $0.15 per haircut
Magazines
$35
per month
Kevin currently charges $15.00 per haircut.
(a)
Determine the unit 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 haircut
Total fixed costs
$
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