Gloria's Grooming is a competitor of Fido Grooming. Gloria Stanley, owner, incurred the following operating costs to groom 2,000 dogs for the first quarter of 2009 (January, February, and March):

Gloria's Grooming earned $45,000 in revenues for the first quarter of 2009.

Requirements 

1. Prepare an income statement for the first quarter of 2009. Compute the ratio of operating expense to total revenue and operating income to total revenue

2. Compute Gloria's unit cost to groom one dog.

Transcribed Image Text:

Wages...... Grooming supplies expense..... Building rent expense.. Utilities Depreciation on furniture and equipment. $16,000 4,000 2,500 1,000 500