The Windshield People repair chips in car windshields in the company’s home county. Rocky Chip, the owner, incurred the following operating costs for the month of February 2012:
Salaries and wages . . . . . . . . . . . . . . . . . . . . . $ 9,000
Windshield repair materials . . . . . . . . . . . . . . 4,900
Depreciation on truck . . . . . . . . . . . . . . . . . . 250
Depreciation on building and equipment . . . . 800
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . 600
Gasoline and utilities . . . . . . . . . . . . . . . . . . . 2,130
The Windshield People earned $26,000 in revenues for the month of February by repairing 500 windshields. All costs shown are considered to be directly related to the repair service.
Requirements
1. Prepare an income statement for the month of February. Compute the ratio of total operating expense to total revenue and operating income to total revenue.
2. Compute the per unit cost of repairing one windshield.
3. The manager of The Windshield People must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal?
4. What kind of system could The Windshield People use to integrate all itsdata?
