Tim and Tina Own an Independent Pet Grooming Business in Which

question 55

Essay

Tim and Tina own an independent pet grooming business in which employees are hired to groom the animals, take care of customer needs, and clean the facility. Other area competitors offer the same services and pay their employees minimum wage. Tim and Tina have decided to pay employees $12.00/hr and include unlimited services for the employee's animals and allow them to provide grooming for one guest of their choice each month. What could the grooming business gain from this payroll decision?

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Definitions:

Income Statement

A report detailing a firm's income, expenditures, and net income or loss for a certain time frame.

Operating Cycle

The time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sale.

Automobile Manufacturer

A company engaged in the designing, production, marketing, and selling of motor vehicles.

Earnings Per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock.