Fuchsia,Inc.provides automobile repair services in the local community.The company provides the following information for the month of March: $$\begin{array} { | l | r | }
\hline \text { Building Rent Expense } & \$ 5200 \
\hline \text { Depreciation Expense-Equipment } & 1600 \
\hline \text { Supplies Expense } & 8000 \
\hline \text { Utilities Expense } & 2350 \
\hline
\end{array}$$ Fuchsia provided services to 1600 clients in the month of March and generated $23,500 as revenue.
How much is the cost per service? (Round your answer to the nearest cent.)
A)$10.72
B)$3.25
C)$10.00
D)$5.72

Question

Fuchsia,Inc.provides automobile repair services in the local community.The company provides the following information for the month of March: $$\begin{array} { | l | r | } 
\hline \text { Building Rent Expense } & \$ 5200 \
\hline \text { Depreciation Expense-Equipment } & 1600 \
\hline \text { Supplies Expense } & 8000 \
\hline \text { Utilities Expense } & 2350 \
\hline
\end{array}$$ Fuchsia provided services to 1600 clients in the month of March and generated $23,500 as revenue.
How much is the cost per service? (Round your answer to the nearest cent.)
A)$10.72
B)$3.25
C)$10.00
D)$5.72

Quizplus · Accepted Answer

Cost per service = Total expenses / Number of services providedTotal expenses = Building Rent Expense + Depreciation Expense-Equipment + Supplies Expense + Utilities ExpenseTotal expenses = $5200 + $1600 + $8000 + $2350 = $17,150Cost per service = $17,150 / 1600 = $10.72

Fuchsia,Inc Fuchsia Provided Services to 1600 Clients in the Month of the Following