Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had
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Question:
Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information:
Direct materials | $600 |
Hygienist\\\'s salary | $4,200 |
Overhead | $4,000 |
Number of treatments | 100 |
Required:
1. Calculate the cost per treatment for April.
$___ per treatment
2. Calculate the cost of services sold for April.
$__
3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?
Profit would be increased by $ __per treatment
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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