Answer:
a. Inventory value of units unsold in the hands of the consignee.
$ 480 * 45= $ 21600
b. The profit for the consignor for the units sold = $12,150
c. The amount of cash that will be remitted by the consignee $10,960.4
Explanation:
a. Inventory value of units unsold in the hands of the consignee.
$ 480 * 45= $ 21600
b. The profit for the consignor for the units sold = $12,150
c. The amount of cash that will be remitted by the consignee $10,960.4
Remittance from consignee $________
Freezers 90 *$ 470= $ 42300
Freight $ 870
Total Cost $ 43,170 for 90 freezer
Cost of One freezer = $ 43170/ 90= 479.6 = $ 480
Sales 45* $750= $ 33750
<u>Cost of 45 freezers= $ 21600</u>
Gross Profit 12150
Installation Charges $ 310
Advertising $ 180
Profit $11660
<u>Commission 699.6</u>
Net Profit $ 10,960.4
Working : 6 % of $11660= $ 699.6
