Question
During its first month of operations, Purrfect Pets purchased 6,300 bags of dog food at a cost of $8 a bag and sold all 6,300
During its first month of operations, Purrfect Pets purchased 6,300 bags of dog food at a cost of $8 a bag and sold all 6,300 bags of dog food on account with payment terms of $ 1/10, net 30 for $10 each. A total of 2,200 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)).
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