Question

Samson, Inc. reported the following information for the​ year: Service Revenue $ 50 comma 000 Operating Expenses 21 comma 500 Net Income 28 comma 500 Number of Services Provided for the Year 10 comma 000 How much was the unit cost per​ service? (Round your answer to the nearest​ cent.)

Answer 1

Answer:

$21.50

Explanation:

The net income is difference between the revenue and the operating expense incurred by the entity.

The unit cost per service is obtained by dividing the operating cost by the number of services provided.

Given that;

Operating expense = $21,500

Number of services provided = 10,000

The unit cost per​ service

= $21,500/10,000

= $21.50 (to the nearest cent)