Snyder Brush Company sells standard hair brushes. The following information summarizes Snyder's operating activities

Snyder Brush Company sells standard hair brushes. The following information summarizes Snyder's operating activities for 2012:

Selling and administrative expenses         $  49,680

Purchases                                                    78,000

Sales revenue                                          138,000

Merchandise inventory, January 1, 2012     7,500

Merchandise inventory, December 31, 2012    12,360

Requirements:

1.  Prepare an income statement for 2012. Compute the ratio of operating expense to total revenue and operating income to total revenue.

2.  Snyder sold 6,000 brushes 2012. Compute the unit cost for one brush.