White Brush Company sells standard hair brushes. The following information summarizes White’s operating activities for 2016:
Selling and Administrative Expenses.....$ 34,020
Purchases............... 65,880
Sales Revenue.............. 97,200
Merchandise Inventory, January 1, 2016.... 8,100
Merchandise Inventory, December 31, 2016 .. 23,436
Requirements
1. Calculate the operating income for 2016.
2. White sold 5,400 brushes in 2016. Compute the unit cost for one brush.