Cornerstone Exercise 6.2 (Algorithmic)

Unit Cost, No Work-In-Process InventoriesLising 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$800Hygienist's salary$4,400Overhead$6,000Number of treatments100Required:

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 - Select your answer -increaseddecreased

Item 3

by $ per treatment

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