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	$900
Hygienist's salary	$4,100
Overhead	$7,000
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- Select your answer -increaseddecreasedItem 3

by $per treatment