Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. On June 8, 2015, Leon's Kitchen Hut bought a set of pots with a $135 list price from Lambert Manufacturing. Leon's receives a 35%

image text in transcribed
image text in transcribed
6. On June 8, 2015, Leon's Kitchen Hut bought a set of pots with a $135 list price from Lambert Manufacturing. Leon's receives a 35% trade discount. Terms of the sale were 2/10n/30. On June 14, Leon's sent a check to Lambert for the pots. Leon's has expenses that are approximately 20% of the selling price. Leon's must also make a profit of 12% of the selling price. A competitor marked down the same set of pots 19%. Assume Leon's eventually decides to also reduce its selling price by 19%. (a) What is the discounted sale price at Kitchen Hut? (b) What was the operating profit or loss? (c) Assuming Leon's variable cost per unit is half of the expenses and his total fixed costs are $50,000; find how many sets of pots he would need to sell to break even (assuming no discount was given)? Selling Price (S) = $126.47 Total Costs $111.29

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S. Warren

7th edition

1285974360, 1285183487, 9781285974361, 978-1285183480

More Books

Students also viewed these Accounting questions