Cornerstone Exercise 6.2 (Algorithmic) Unit Cost, No Work-In-Process Inventories

Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information:

Direct materials	$600
Hygienist's salary	$4,200
Overhead	$5,000
Number of treatments	100

Required:

1. Calculate the cost per treatment for April. $ per treatment

2. Calculate the cost of services sold for April. $

3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment? Profit would be - Select your answer -increaseddecreasedItem 3

by $ per treatment