Question

Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,200 of revenues by providing services to 47 clients. Operating costs for February were $9,500, and non-operating costs were $4,500. What is the unit cost per service? (Round your answer to the nearest cent.)

a) $1,043.48
b) $1,234.04
c) $1,297.87
d) $1,468.09

Answer 1

To determine the unit cost per service, divide the operating costs by the number of services provided. The unit cost per service is $1,234.04. The correct option is (b) $1,234.04.

Step-by-step explanation:

To determine the unit cost per service, we need to divide the operating costs by the number of services provided. Operating costs include both variable and fixed costs.

In this case, the operating costs for February were $9,500. Since we are given the revenue earned and the number of clients, we can calculate the unit cost per service as follows:

Unit cost per service = Operating costs / Number of services

Number of services = Revenue / Number of clients

Unit cost per service = $9,500 / ( $55,200 / 47 ) = $1,234.04

Therefore, the unit cost per service is $1,234.04. The correct option is (b) $1,234.04.