Fido Grooming provides grooming services in the local community. In April, Kevin
Oliver, the owner, incurred the following operating costs to groom 650 dogs:
Wages . . . . . . . . . . . . . . . . . . . . $ 3,900
Grooming supplies expense . . . 1,625
Building rent expense . . . . . . . . 1,300
Utilities . . . . . . . . . . . . . . . . . . . 325
Depreciation on equipment . . . 130
Fido Grooming earned $16,300 in revenues from grooming for the month of April.
Requirements
1. What is Fido’s net operating income for April?
2. What is the cost to groom one dog?