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Question 6 Part 2

Question 6 Part 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 6 Part 2

2. Compute the cost per unit of repairing one windshield. 3. The manager of Windshield Doctors must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal?
Transcribed Image Text:2. Compute the cost per unit of repairing one windshield. 3. The manager of Windshield Doctors must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal?
The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of March 2018: E (Click the icon to view the operating costs.) The Windshield Doctors earned $23,000 in service revenues for the month of March by repairing 500 windshields. All costs shown are considered to be directly related to the repair service. Read the requirements. i Data Table - x Net Service Revenue $ 23,000 Expenses: Salaries and Wages Expense $ 12,000 Materials Expense 4,600 Salaries and wages 12,000 Depreciation Expense-Truck 300 Windshield repair materials 4,600 Depreciation Expense-Building and Equipment 1,200 Depreciation on truck 300 Supplies Expense 300 Depreciation on building and equipment 1,200 Utilities Expense 460 Supplies used 300 18,860 Utilities 460 Total Expenses $ 4,140 Operating Income (Loss) Print Done Requirement 2. Compute the cost per unit of repairing one windshield. (Round your answer Cost per windshield =
Transcribed Image Text:The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of March 2018: E (Click the icon to view the operating costs.) The Windshield Doctors earned $23,000 in service revenues for the month of March by repairing 500 windshields. All costs shown are considered to be directly related to the repair service. Read the requirements. i Data Table - x Net Service Revenue $ 23,000 Expenses: Salaries and Wages Expense $ 12,000 Materials Expense 4,600 Salaries and wages 12,000 Depreciation Expense-Truck 300 Windshield repair materials 4,600 Depreciation Expense-Building and Equipment 1,200 Depreciation on truck 300 Supplies Expense 300 Depreciation on building and equipment 1,200 Utilities Expense 460 Supplies used 300 18,860 Utilities 460 Total Expenses $ 4,140 Operating Income (Loss) Print Done Requirement 2. Compute the cost per unit of repairing one windshield. (Round your answer Cost per windshield =
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