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rjkz [21]
3 years ago
9

Spencer Company consigned 88 freezers, costing $490 each, to Remmers Company.

Business
1 answer:
nata0808 [166]3 years ago
6 0

Answer:

Inventory in consignee: $  22,005

Consignor profit:            $    6,810.6

Explanation:

We must remember that the goods cost is the sum of all it was needed to get the inventory ready for sell:

consigned goods: 88 x 490 = 43,120

shipping cost                                890

Total Cost for Spencer            44,010

44,010 /88 freezers x 44 freezers at hand: 22,005

profit on the consignor:

sales revenue 44 x 710 =              31,240

commission 6%                               (1,874.4)

cost of good sold

44,010 / 88  x 44 freezers sold: (22,005)

advertising                                        (240)

installation cost                                 (310)

                    Profit                          6,810.6

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