Calculating income and unit cost for a service organization
Duncan and Oates provides hair cutting services in the local community. In February, the business incurred the following operating costs to cut the hair of 230 clients:
|
Hair supplies expense |
$ 805 |
|
Building rent expense |
1,150 |
|
Utilities |
184 |
|
Depreciation on equipment |
46 |
Duncan and Oates earned $5,200 in revenues from haircuts for the month of February.
Requirements
1. What is the net operating income for the month?
2. What is the cost of one haircut?