Income Statement, Cost of Services Provided, 2-17 Service Attributes L02, L03 Young, Coopers, and Touche (YCT) is a tax services firm. The firm is located in San Diego and employs 10 professionals and eight staff. The firm does tax work for small businesses and well-to-do individuals. The following data are provided for the last fiscal year. (YCT's fiscal year runs from July 1 through June 30 .) Required: 1. Prepare a statement of cost of services sold. 2. Refer to the statement prepared in Requirement 1 . What is the dominant cost? Will this always be true of service organizations? If not, provide an example of an exception. 3. Assuming that the average fec for processing a tax return is $650, prepare an income statement for YCT. 4. Discuss three differences between services and tangible products. Calculate the average cost of preparing a tax return for last year. How do the differences between services and tangible products affect the ability of YCT to use the last year's average cost of preparing a tax return in budgeting the cost of tax return services to be offered next year