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?
A) $11.77
B) $5.18
C) $13.67
D) $10.63

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?
A) $11.77
B) $5.18
C) $13.67
D) $10.63

Quizplus · Accepted Answer

Cost per service = Total expenses / Number of servicesTotal 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