(L. OBJ. 3) Calculating income and cost per unit for a service organization [5—10 min]...

(L. OBJ. 3) Calculating income and cost per unit for a service organization [5—10 min]

Martin and Reynolds provides hair cutting services in the local community. In January, the business incurred the following operating costs to cut the hair of 220 Clients:

Martin and Reynolds earned $4,900 in revenues from haircuts for the month of January.

Requirements

1. What is the net operating income for the month?

2. What is the cost of one haircut?