Asked by

Jitesh Chaudhari
on Dec 05, 2024

verifed

Verified

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.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, decreasing as production increases.

Annual Fixed Cost

The total of all business expenses that remain constant regardless of any change in production levels or sales volume over a year.

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or production process over a specific period.

  • Calculate annual costs based on operational periods and output levels.
verifed

Verified Answer

JZ
jenni zirbelDec 07, 2024
Final Answer:
Get Full Answer