Nurix Inc. is a business consulting firm. During the month of February, Nurix earned $55,400 of revenues by providing services to 45 clients. Operating expenses for February were $8,500 and non-operating expenses were $4,500. What is the cost per service?
A)$100.00
B)$188.88
C)$942.22
D)$288.00

Question

Quizplus · Accepted Answer

First, we need to calculate the total expenses for February:
Total expenses = Operating expenses + Non-operating expenses
Total expenses = $8,500 + $4,500
Total expenses = $13,000

Next, we can calculate the average revenue per client:
Average revenue per client = Total revenues / Number of clients
Average revenue per client = $55,400 / 45
Average revenue per client = $1,231.11

Finally, we can calculate the cost per service:
Cost per service = (Total revenues - Total expenses) / Number of clients
Cost per service = ($55,400 - $13,000) / 45
Cost per service = $1,244.44 - $288.89
Cost per service = $955.55
Therefore, the cost per service is $955.55, which is closest to option B: $188.88.

Nurix Inc Is a Business Consulting Firm