Clyde Conway owns Clyde's Pets, a small retail shop selling pet supplies. On December 31, 2018, the accounting records of Clyde's Pets showed the following:

Merchandise Inventory on December 31, 2018 ...................... $ 10,100

Merchandise Inventory on January 1, 2018 .............................    15,900

Net Sales Revenue ........................................................................  56,000

Utilities Expense for the shop ....................................................     3,300

Rent for the shop ..........................................................................    4,100

Sales Commissions .......................................................................   2,650

Purchases of Merchandise Inventory ........................................ 25,000

Requirements

1. Prepare an income statement for Clyde's Pets for the year ended December 31, 2018.

2. Clyde's Pets sold 3,850 units. Determine the unit cost of the merchandise sold, rounded to the nearest cent?