Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March:
$$\begin{array} { | l | l | }
\hline \text { Building rent expense } & \$ 5000 \
\hline \text { Depreciation expense -equipment } & 1400 \
\hline \text { Supplies expense } & 7500 \
\hline \text { Electricity and gas expense } & 2350 \
\hline
\end{array}$$
Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue.
How much is the cost per service?
A) $3.33
B) $9.57
C) $10.83
D) $5.83

Question

Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March:
$$\begin{array} { | l | l | } 
\hline \text { Building rent expense } & \$ 5000 \
\hline \text { Depreciation expense -equipment } & 1400 \
\hline \text { Supplies expense } & 7500 \
\hline \text { Electricity and gas expense } & 2350 \
\hline
\end{array}$$
Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue.
How much is the cost per service?
A) $3.33
B) $9.57
C) $10.83
D) $5.83

Quizplus · Accepted Answer

The total expenses for March are $5000 (rent) + $1400 (depreciation) + $7500 (supplies) + $2350 (electricity and gas) = $16,250. Dividing this by the 1500 services provided gives a cost per service of $10.83.

Fuchsia Ltd Provides Automobile Services in the Local Community Fuchsia Provided Services to 1500 Clients in the Month of Provides