Samson Ltd reported the following information for the year 2017:
$$\begin{array} { | l | l | }
\hline \text { Oervice revenue } & \$ 45,000 \
\hline \text { Operating expenses } & 24,000 \
\hline \text { Net profit } & 21,000 \
\hline \text { Number of services provided for the year } & 11,500 \
\hline
\end{array}$$
How much was the unit cost per service?
A) $2.09
B) $6.00
C) $3.91
D) $1.83

Question

Samson Ltd reported the following information for the year 2017:
$$\begin{array} { | l | l | } 
\hline \text { Oervice revenue } & \$ 45,000 \
\hline \text { Operating expenses } & 24,000 \
\hline \text { Net profit } & 21,000 \
\hline \text { Number of services provided for the year } & 11,500 \
\hline
\end{array}$$
How much was the unit cost per service?
A) $2.09
B) $6.00
C) $3.91
D) $1.83

Quizplus · Accepted Answer

Unit cost per service = Operating expenses / Number of services provided for the year= 24,000 / 11,500= $2.09

Samson Ltd Reported the Following Information for the Year 2017