Question
The Mang Cha-a Publishing ships 8-volume sets of encyclopedia to book dealers on consignment. The sets are to be sold at an advertised price of
The Mang Cha-a Publishing ships 8-volume sets of encyclopedia to book dealers
on consignment. The sets are to be sold at an advertised price of P99. The cost
per set is P50. Consignees are allowed a commission of 30% of the sales price,
and are to be reimbursed for freight relating to the consigned goods.
On December 3, 20x7, 100 sets were sent to JCo Bookstore on consignment.
The consignor paid packing charges of P170 for the shipment. The shipping cost
paid by the consignor was P400, and the consignee paid P60 for freight on the
sets received. 60 sets were sold in December for cash. Remittance of the amount
owed to the consignor was made on December 31, 20x7.
Both the consignor and the consignee take physical inventories, and they adjust
and close their books at year-end.
How much is the consignor's net profit on the consignment?
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