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Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,530 per month. One of the barbers serves as the manager and receives an extra $570 per month. In addition to the base rate, each barber also receives a commission of $5.35 per haircut. Other costs are as follows. Advertising $270 per month Rent $1,100 per month Barber supplies $0.40 per haircut Utilities $190 per month plus $0.25 per haircut Magazines $30 per month Cullumber currently charges $15 per haircut. Determine the 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 $enter a dollar amount rounded to 2 decimal places Total fixed $enter a dollar amount

Answer :

Answer:

Total Variable cost  = $6

Total fixed cost  = $9,810

Explanation:

The computation of total variable cost and total fixed cost is shown below:-

Total Variable cost  = commission + Barber supplies + Utilities

= $5.35 + $0.40 + $0.25

= $6

Total fixed cost = ( Barbers × Base rate) + Extra Receive + Advertisement + Rent + Utilities + Magazines

= (5 × $1,530) + $570 + $270 + $1,100 + $190 + $30

= $9,810

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