Darren runs a barbershop with average fixed costs of $60 per day and a total output of 50 haircuts per day.Darren shuts down every year during the last week of July and the first week of August (meaning it is open 50 weeks a year).What is his annual fixed cost if he is open 6 days per week?
A) $18 000
B) $3 000
C) $60
D) The answer cannot be determined with the information available.

Question

Quizplus · Accepted Answer

Darren's barbershop is open 6 days a week for 50 weeks a year, which totals 300 days (6 days/week * 50 weeks). With average fixed costs of $60 per day, the annual fixed cost is $18,000 ($60/day * 300 days).

Darren Runs a Barbershop with Average Fixed Costs of $60