Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Work the bonus problem correctly and show all calculations for 10 extra points. The BEV Toy Shop purchased 50 wagons at $45 per wagon less

Work the bonus problem correctly and show all calculations for 10 extra points.

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensics Audits And Dreaming

Authors: Helgard Petrus - Coetser

1st Edition

1664260250, 978-1664260252

More Books

Students also viewed these Accounting questions

Question

Define capital structure.

Answered: 1 week ago

Question

List out some inventory management techniques.

Answered: 1 week ago