Question
On August 8, Leons Kitchen Hut bought a set of pots with a $136 list price from Lambert Manufacturing. Leons receives a 30% trade discount.
On August 8, Leon’s Kitchen Hut bought a set of pots with a $136 list price from Lambert Manufacturing. Leon’s receives a 30% trade discount. Terms of the sale were 2/10, n/30. On August 14, Leon’s sent a check to Lambert for the pots. Leon’s expenses are 15% of the selling price. Leon’s must also make a profit of 15% of the selling price. A competitor marked down the same set of pots 34%. Assume Leon’s reduces its selling price by 22%.
A. What is the sale price at Kitchen Hut?
B. What was the operating profit or loss?
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Trade Discount Trade discount can be defined as the reduction in terms of percentage in the list price that a manufacturer charges from the wholesaler ...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
