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Question

White Brush Company sells standard hair brushes. The following information summarizes Whites 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

A, Calculate the operating income for 2016

B. White sold 5,400 brushes in 2016. Compute the unit cost for one brush.

Solution
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