Samson Inc. reported the following information for the year 2015: $$\begin{array} { | l | r | }
\hline \text { Service Revenue } & \$ 40,000 \
\hline \text { Operating Expenses } & \$ 23,625 \
\hline \text { Net Income } & \$ 16,375 \
\hline \text { Number of Services Provided for the Year } & 10,500 \
\hline
\end{array}$$ How much was the unit cost per service?

Question

Samson Inc. reported the following information for the year 2015: $$\begin{array} { | l | r | } 
\hline \text { Service Revenue } & \$ 40,000 \
\hline \text { Operating Expenses } & \$ 23,625 \
\hline \text { Net Income } & \$ 16,375 \
\hline \text { Number of Services Provided for the Year } & 10,500 \
\hline
\end{array}$$ How much was the unit cost per service?

Quizplus · Accepted Answer

Unit cost per service can be calculated by dividing the total operating expenses by the number of services provided. 
Unit Cost Per Service = Operating Expenses ÷ Number of Services Provided 
Substituting the values, 
Unit Cost Per Service = $23,625 ÷ 10,500 = $2.25 
Therefore, the answer is choice C.

Samson Inc How Much Was the Unit Cost Per Service? A) $1

Samson Inc How Much Was the Unit Cost Per Service?
A) $1