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Chapter 16: Q12SE (page 888)

Calculating unit cost per service

Marx and Tyler provides hair-cutting services in the local community. In February, the business cut the hair of 190 clients, earned \(4,800 in revenues, and incurred the following operating costs:

Hair Supplies Expense \) 950

Wages Expense 548

Utilities Expense 190

Depreciation Expense鈥擡quipment 60

What was the cost of service to provide one haircut?

Short Answer

Expert verified

The cost to service to provide one haircut is $9.2

Step by step solution

01

Computation of total cost

TotalCost=Wages+HairSupplies+Utilitiesexpense+Depreciationexpense=$548+$950+$190+$60=$1,748

02

Computation of Cost to service to provide one haircut

Costtoservicetoprovideonehaircut=TotalcostTotalnumberofunits=$1,748190=$9.2

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