Question

Samson, Inc. reported the following information for the​ year: Service Revenue $ 40 comma 000 Operating Expenses 24 comma 000 Net Income 16 comma 000 Number of Services Provided for the Year 10 comma 500 How much was the unit cost per​ service? (Round your answer to the nearest​ cent.)

Answer 1

$2.29

Step-by-step explanation:

The units cost per service is the ratio of the total operating expense to the total number of services provided during the year. Given that the Operating Expenses 24 comma 000 and the Number of Services Provided for the Year 10 comma 500,

the unit cost per​ service

= $24,000/10,500

= $2.285714286

To the nearest cents

= $2.29