The Oriole 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 $1,310 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $850 plus 60 cents per haircut; depreciation on equipment $490; barber supplies 40 cents per haircut; utilities $290; and advertising $240. The price of a haircut is $13. 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

The Oriole 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 $1,310 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $850 plus 60 cents per haircut; depreciation on equipment $490; barber supplies 40 cents per haircut; utilities $290; and advertising $240. The price of a haircut is $13. 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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