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Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $800, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier $700 $2,500 Other expenses $473 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. *** Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,200 of revenues by providing services to 46 clients. Operating costs for February were $8,500 and non-operating costs were $5,500. What is the unit cost per service? (Round your answer to the nearest cent.) OA. $184.78 OB. $304.35 OC. $1,200.00 OD. $119.57

Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $800, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier $700 $2,500 Other expenses $473 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. *** Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,200 of revenues by providing services to 46 clients. Operating costs for February were $8,500 and non-operating costs were $5,500. What is the unit cost per service? (Round your answer to the nearest cent.) OA. $184.78 OB. $304.35 OC. $1,200.00 OD. $119.57

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $800, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier $700 $2,500 Other expenses $473 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. ***
Transcribed Image Text:Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $800, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier $700 $2,500 Other expenses $473 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. ***
Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,200 of revenues by providing services to 46 clients. Operating costs for February were $8,500 and non-operating costs were $5,500. What is the unit cost per service? (Round your answer to the nearest cent.) OA. $184.78 OB. $304.35 OC. $1,200.00 OD. $119.57
Transcribed Image Text:Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,200 of revenues by providing services to 46 clients. Operating costs for February were $8,500 and non-operating costs were $5,500. What is the unit cost per service? (Round your answer to the nearest cent.) OA. $184.78 OB. $304.35 OC. $1,200.00 OD. $119.57
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