Samson,Inc How Much Was the Unit Cost Per Service? (Round Your

question 112

Multiple Choice

Samson,Inc.reported the following information for the year: $$\begin{array} { | l | r | } \hline \text { Service Revenue } & \$ 40,000 \\\hline \text { Operating Expenses } & 22,500 \\\hline \text { Net Income } & 17,500 \\\hline \text { Number of Services Provided for the Year } & 12,000 \\\hline\end{array}$$
How much was the unit cost per service? (Round your answer to the nearest cent.)

• A) $3.33
• B) $1.46
• C) $1.88
• D) $5.21

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period, facilitating the calculation of net income or loss.

Post-Closing Trial Balance

A trial balance prepared after closing entries are made, showing the balances of ledgers that remain for the start of the next period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since its purchase.

Depreciation Expense

Methodically dispersing the cost of a physical asset over its serviceable lifetime.