Question: Cornerstone Exercise 6.2 (Algorithmic) Unit Cost, No Work-In-Process Inventories Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising

Cornerstone Exercise 6.2 (Algorithmic) Unit Cost, No Work-In-Process Inventories

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 $900
Hygienist's salary $4,100
Overhead $8,000
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 30 percent? How would this affect the profit per treatment? Profit would be - Select your answer -increaseddecreased

by $ per treatment

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