The Dent Fixer repairs small dents and dings in the doors and other body panels of automobiles. Grant Edwards, owner, incurred the following operating costs in the month of October 2008.

The Dent Fixer earned $8,000 in revenue for the month of October, when Edwards repaired 160 automobiles.

Requirements 

1. Prepare an income statement for the month of October. Compute the ratio of total operating expense to total revenue and operating income to total revenue,

2. Compute the unit operating cost per automobile repaired.

Transcribed Image Text:

Salary Depreciation on truck........ Supplies expense... Gasoline......... Utilities........... $4,000 250 150 250 650