Raphael's Salon has $5,000 in fixed costs and $15,000 in variable costs monthly.Raphael's Salon performs 1,500 haircuts per month.What is the average total cost for Raphael's Salon?

Question

Quizplus · Accepted Answer

The average total cost is calculated by adding fixed costs and variable costs, then dividing by the number of haircuts. Total costs = $5,000 + $15,000 = $20,000. Average total cost = $20,000 / 1,500 = $13.33.

Raphael's Salon Has $5,000 in Fixed Costs and $15,000 in Variable