Question

Sandman repairs chips in car windshields. The company incurred the following operating costs for the month of February 2016:
Salaries and wages............... $ 6,000
Windshield repair materials........... 4,500
Depreciation on truck............... 250
Depreciation on building and equipment...... 600
Supplies used................ 500
Utilities.................. 2,180
Sandman earned $27,000 in revenues for the month of February by repairing 200 windshields. All costs shown are considered to be directly related to the repair service.
Requirements
1. Prepare an income statement for the month of February.
2. Compute the cost per unit of repairing one windshield.
3. The manager of Sandman must keep unit operating cost below $60 per windshield in order to get his bonus. Did he meet the goal?


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  • CreatedJune 15, 2015
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