Star Health Ltd is a fitness centre in Sydney City.In October,the company earned $556,000 in revenues and incurred the following operating costs from 400 customers:
$$\begin{array} { | l | l | }
\hline \text { Manager's salary } & \$ 51,000 \
\hline \text { Gym rent } & 15,000 \
\hline \text { Depreciation expense -equipment } & 16,800 \
\hline \text { Office supplies } & 24,000 \
\hline \text { Electricity and gas expense } & 60,000 \
\hline \text { Trainer's salary } & 21,000 \
\hline
\end{array}$$
How much is the unit cost per customer service?

Question

Star Health Ltd is a fitness centre in Sydney City.In October,the company earned $556,000 in revenues and incurred the following operating costs from 400 customers:
$$\begin{array} { | l | l | } 
\hline \text { Manager's salary } & \$ 51,000 \
\hline \text { Gym rent } & 15,000 \
\hline \text { Depreciation expense -equipment } & 16,800 \
\hline \text { Office supplies } & 24,000 \
\hline \text { Electricity and gas expense } & 60,000 \
\hline \text { Trainer's salary } & 21,000 \
\hline
\end{array}$$
How much is the unit cost per customer service?

Quizplus · Accepted Answer

Unit cost per customer service can be calculated by dividing total operating expenses by the number of customers served. 
Total operating expenses = $262,400 (sum of salaries, rent, utilities, equipment maintenance, and supplies)
Number of customers served = 400
Unit cost per customer service = $262,400/400 = $656
Therefore, the correct answer is B as it is the closest option to $656.

Star Health Ltd Is a Fitness Centre in Sydney City