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 six 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, totaling 300 days a year. With average fixed costs of $60 per day, the annual fixed cost is 300 days * $60/day = $18,000.

Darren Runs a Barbershop with Average Fixed Costs of $60