Calculating income and unit cost for a service organization
Duncan and Oates provides hair cutting services in the local community. In February, the business incurred the following operating costs to cut the hair of 230 clients:
| Hair supplies expense | $ 805 |
| Building rent expense | 1,150 |
| Utilities | 184 |
| Depreciation on equipment | 46 |
Duncan and Oates earned $5,200 in revenues from haircuts for the month of February.
Requirements
1. What is the net operating income for the month?
2. What is the cost of one haircut?
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