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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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