Darren Runs a Barbershop with Average Fixed Costs of $60

question 38

Multiple Choice

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.