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Sparky Electrical consigns its circuit breaker inventory to Big Box Company who sells it on Sparky's behalf. Big Box sells the circuit breakers for $450
Sparky Electrical consigns its circuit breaker inventory to Big Box Company who sells it on Sparky's behalf. Big Box sells the circuit breakers for $450 each, and in the consignment agreement, Sparky pays Big Box a commission equal to 25% of the sales revenue. Each circuit breaker costs Sparky $175 to make and $10 to ship to Big Box. Big Box sells 500 circuit breakers in March 2020. How much profit will Sparky recognize in March 2020? $132,500. $76,250. $225,000. $81,250
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