Vin Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base salary, each barber also receives a commission of $4.50 per haircut Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines (a) $200 per month $1,100 per month, $0.30 per haircut per month plus $0.20 per haircut Vin currently charges $10.00 per haircut. $175 $25 per month Total fixed costs 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 unit variable cost per haircut
Vin Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base salary, each barber also receives a commission of $4.50 per haircut Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines (a) $200 per month $1,100 per month, $0.30 per haircut per month plus $0.20 per haircut Vin currently charges $10.00 per haircut. $175 $25 per month Total fixed costs 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 unit variable cost per haircut
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vin Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,250 per month. One of the barbers
serves as the manager and receives an extra $500 per month. In addition to the base salary, each barber also receives a commission of
$4.50 per haircut
Other costs are as follows.
Advertising
Rent
Barber supplies
Utilities
Magazines
(a)
$200 per month
per month
per haircut.
per month plus $0.20 per haircut
$1,100
Vin currently charges $10.00 per haircut.
$0.30
$175
$25 per month
Total fixed costs
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 unit variable cost per haircut $
$
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