Schatzie’s is a veterinary clinic. At the beginning of July, the clinic had $720 of veterinary supplies on hand. The following information is available for July 2009.
Salaries for veterinary staff.............................................. $32,000
Salaries for veterinary assistants....................................... 12,000
Salary for receptionist..................................................... 2,500
Wages for office workers.............................................. 6,000
Veterinary supplies purchased in July............................ 9,600
Veterinary supplies on hand on July 31............................. 1,150
Depreciation on hospital and lab equipment........................ 8,600
Depreciation on office equipment...................................... 3,000
Building rent (60% related to treatment) .............................. 3,600
Utilities (80% related to treatment) .......................................... 1,800
Required:
(a) What is the overhead amount related to the cost of services rendered?
(b) Compute Cost of Services Rendered.
(c) Schatzie’s collected $88,000 in treatment fees. What was Schatzie’s gross profit and net income? (Hint: Gross profit is revenues minus cost of services provided.)