Question

​Fuchsia, Inc. provides automobile repair services in the local community. The company provides the following information for the month of​ March: Building Rent Expense ​$5,200 Depreciation Expenselong dashEquipment ​1,600 Supplies Expense ​8,000 Utilities Expense ​2,350 Fuchsia provided services to​ 1,600 clients in the month of March and generated​ $23,500 as revenue. How much is the cost per​ service?

Answer 1

Cost per​ service = $10.72

Step-by-step explanation:

Total cost = Building Rent Expense ​+ Depreciation Expense on Equipment + Supplies Expense ​+ Utilities Expense = $5,200 + $1,600 + $8,000 + $​2,350 = $17,150

Number of services provided = 1,600

Cost per​ service = Total cost ÷ Number services provided = $17,150 ÷ 1,600 = $10.72