Question

The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of July 2016:
Salaries and wages............ $ 7,000
Windshield repair materials........ 4,200
Depreciation on truck.......... 450
Depreciation on building and equipment... 1,200
Supplies used............. 300
Utilities................ 3,490
The Windshield Doctors earned $26,000 in revenues for the month of July by repairing 100 windshields. All costs shown are considered to be directly related to the repair service.
Requirements
1. Prepare an income statement for the month of July.
2. Compute the cost per unit of repairing one windshield, rounded to the nearest cent.
3. The manager of The Windshield Doctors must keep unit operating cost below $150 per windshield in order to get his bonus. Did he meet the goal?


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  • CreatedJune 15, 2015
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