The Glass Doctors repair chips in car windshields. The company incurred the following operating costs for the month of July 2018:
Salaries and wages ............................................ $ 10,000
Windshield repair materials ..................................... 4,100
Depreciation on truck .............................................. 500
Depreciation on building and equipment ........................ 900
Supplies used ....................................................... 450
Utilities ........................................................... 4,550
The Glass Doctors earned $25,000 in service revenues for the month of July by repairing 250 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 Glass Doctors must keep unit operating cost below $80 per windshield in order to get his bonus. Did he meet the goal?