Question
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvies current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes:
| Description | Retail Price | Cost | Employee Price | |||
| Specialized road bike | $ | 7,900 | $ | 5,370 | $ | 5,530 |
| Rocky Mountain mountain bike | 8,600 | 7,300 | 6,880 | |||
| Trek road bike | 4,300 | 2,950 | 3,010 | |||
| Yeti mountain bike | 5,500 | 4,030 | 4,400 | |||
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b. What amount of deductions is Bad Dog allowed to claim from these transactions?
AMOUNT OF DEDUCTIONS:
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Authors: Penny Buckley
1st Edition
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