Question
During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $8 a bag and sold all 6,100
During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $8 a bag and sold all 6,100 bags of dog food on account with payment terms of $ 3/10, net 30 for $10 each. A total of 2,800 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $200 were granted to customers whose dogs did not like the dog food.
Required:
a. Calculate the gross profit for the month.
b. Calculate the gross profit percentage for the month. (Round your answer to one decimal place (i.e., 0.1234 should be entered as 12.3)).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started