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 $200 per month $1,100 per month $0.30 per haircut $175 (a) $25 per month plus $0.20 per haircut per month Vin currently charges $10.00 per haircut. 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 $200 per month $1,100 per month $0.30 per haircut $175 (a) $25 per month plus $0.20 per haircut per month Vin currently charges $10.00 per haircut. 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 $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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