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?