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	$4,400
Overhead	$6,000
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 30 percent? How would this affect the profit per treatment? Profit would be by $ per treatment