Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March: $$\begin{array} { | l | r | }
\hline \text { Building Rent Expense } & \$ 5,000 \
\hline \text { Depreciation Expense-Equipment } & 1,700 \
\hline \text { Supplies Expense } & 8,500 \
\hline \text { Utilities Expense } & 2,450 \
\hline
\end{array}$$ Fuchsia provided services to 1,500 clients in the month of March and generated $20,500 as revenue.
How much is the cost per service?

Question

Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March: $$\begin{array} { | l | r | } 
\hline \text { Building Rent Expense } & \$ 5,000 \
\hline \text { Depreciation Expense-Equipment } & 1,700 \
\hline \text { Supplies Expense } & 8,500 \
\hline \text { Utilities Expense } & 2,450 \
\hline
\end{array}$$ Fuchsia provided services to 1,500 clients in the month of March and generated $20,500 as revenue.
How much is the cost per service?

Quizplus · Accepted Answer

Cost per service = Total expenses / Number of clientsTotal expenses = Building Rent Expense + Depreciation Expense-Equipment + Supplies Expense + Utilities ExpenseTotal expenses = $5,000 + $1,700 + $8,500 + $2,450 = $17,650Cost per service = $17,650 / 1,500 = $11.77

Fuchsia Inc Fuchsia Provided Services to 1,500 Clients in the Month of Company