Question
The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade discount on May 8. The invoice had terms of 3/10,
The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade discount on May 8. The invoice had terms of 3/10, 2/20, N/30. On May 18, the shop sent a check for an amount that gave it a credit for the balance due. On May 31, the remaining balance was paid. The shop expects a profit of 30% of cost and 15% of cost for operating expenses. From May until the end of September, the shop sold 40 wagons at its regular markup. From September through December, the remaining wagons were sold with a 35% markdown price. It is your task to determine the following, remembering to show and label all calculations:
- The total cost of the wagons before any discount was taken; the net cost after the trade discount.
- The amount of remittance to the nearest cent on May 18.
- The amount of remittance to the nearest cent on May 31.
- The total cost and individual cost to the nearest cent per wagon after all discounts.
- The amount saved by making the two payments.
- The breakeven point to the nearest cent for all wagons.
- The regular list price per wagon rounded to the nearest cent.
- The reduced list price per wagon rounded to the nearest cent.
- The total revenue received from the sale of all wagons.
- The total amount of operating profit or loss and the percent of cost this amount was (to the nearest tenth percent.
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