The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of March 2018:
Salaries and wages .................................. $ 12,000
Windshield repair materials ........................... 4,600
Depreciation on truck .................................... 300
Depreciation on building and equipment ............ 1,200
Supplies used ............................................. 300
Utilities ................................................... 460
The Windshield Doctors earned $23,000 in service revenues for the month of March by repairing 500 windshields. All costs shown are considered to be directly related to the repair service.
Requirements
1. Prepare an income statement for the month of March.
2. Compute the cost per unit of repairing one windshield.
3. The manager of Windshield Doctors must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal?