Return to Table 6.1 and change the cost price to £3 and the selling price to £3.50.

Calculate the profit if the customer receives

(a) 70 items,

(b) 80 items,

(c) 90 items and

(d) 100 items. How many items remain in inventory (stock) in each of these four cases?

What can you say about the pattern of profit which appears from the four calculations you have carried out? Now write down the effect on the accounting equation for each of these four separate situations. Doing this will help you to test your own understanding before you proceed further.