Jing Statistical Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians post their rates, qualifications, and references on the website, and Jing receives 25% of the fee paid to the statisticians in exchange for identifying potential customers. VetMed Associates contact Jing and arranges to pay a consultant $1,500 in exchange for analyzing some data. Jing's income statement would include the following with respect to this transaction:

Question

Quizplus · Accepted Answer

Jing Statistical Services only receives a commission of 25% for identifying potential customers, so its revenue in this transaction is $375 (= 25% x $1,500). The cost of services ($1,125 = 75% x $1,500) is incurred by the statistician who analyzes the data for VetMed Associates.

Jing Statistical Services Operates a Website That Links Experienced Statisticians