Question

Luis Castillo, a commission merchant in Dallas, buys merchandise exclusively for principals. A recent transaction is listed below. Compute Luis' commission on the purchase and the gross cost. Local Delivery Air Freight Prime Cost Commission Rate Commission Storage Gross Cost $8,600 6.5% 44 77 91 $ $

Answer 1

Answer:

commission on the purchase  = $559

gross cost = $9371

Step-by-step explanation:

Given data

Prime Cost  = $8,600

Commission Rate = 6.5%

Local Delivery = 44

storage  = 77

air freight = 91

to find out

Luis' commission on the purchase and the gross cost

solution

we find first commission on the purchase that is = commision @ 6.5%

commission on the purchase = 8600 × 0.065 = $559

commission on the purchase  = $559

and

gross cost = Prime Cost + Commission + Local Delivery +storage +air freight

gross cost = 8600 + 559 +  44+ 77 + 91

gross cost = $9371