Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 441 Weeks Ago, 2 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 29 May 2017 My Price 7.00

Decision Case 5-4 Gross Profit for a Merchandiser

Decision Case 5-4  Gross Profit for a Merchandiser

Emblems For You sells specialty sweatshirts. The purchase price is $10 per unit plus 10% tax and a shipping cost of 50¢ per unit. When the units arrive, they must be labeled, at an additional cost of 75¢ per unit. Emblems purchased, received, and labeled 1,500 units, of which 750 units were sold during the month for $20 each. The controller has prepared the following income statement:

Sales

$15,000

Cost of sales ($11 x 750)

     8,250

Gross profit

$  6,750

Shipping expense

750

Labeling expense

1,125

Net income

$  4,875

Emblems is aware that a gross profit of 40% is standard for the industry. The marketing manager believes that Emblems should lower the price because the gross profit is higher than the industry average.

Required

1.        Calculate Emblems’ gross profit ratio.

2.        Explain why Emblems should or should not lower its selling price.

 

 

Answers

Alpha Geek
(8)
Status NEW Posted 29 May 2017 11:05 AM My Price 7.00

-----------

Attachments

file 1496056067-1416661_1_636315844556541534_Gross-profit-ratio.xlsx preview (274 words )
14-----------166-----------61&-----------amp-----------;am-----------p;i-----------nfo-----------Id=-----------506-----------914-----------Dec-----------isi-----------on -----------Cas-----------e 5------------4Â-----------  G-----------ros-----------s P-----------rof-----------it -----------for----------- a -----------Mer-----------cha-----------ndi-----------ser-----------Emb-----------lem-----------s F-----------or -----------You----------- se-----------lls----------- sp-----------eci-----------alt-----------y s-----------wea-----------tsh-----------irt-----------s. -----------The----------- pu-----------rch-----------ase----------- pr-----------ice----------- is----------- $1-----------0 p-----------er -----------uni-----------t p-----------lus----------- 10-----------% t-----------ax -----------and----------- a -----------shi-----------ppi-----------ng -----------cos-----------t o-----------f 5-----------0¢----------- pe-----------r u-----------nit-----------. W-----------hen----------- th-----------e u-----------nit-----------s a-----------rri-----------ve,----------- th-----------ey -----------mus-----------t b-----------e l-----------abe-----------led-----------, a-----------t a-----------n a-----------ddi-----------tio-----------nal----------- co-----------st -----------of -----------75Â-----------¢ p-----------er -----------uni-----------t. -----------Emb-----------lem-----------s p-----------urc-----------has-----------ed,----------- re-----------cei-----------ved-----------, a-----------nd -----------lab-----------ele-----------d 1-----------,50-----------0 u-----------nit-----------s, -----------of -----------whi-----------ch -----------750----------- un-----------its----------- we-----------re -----------sol-----------d d-----------uri-----------ng -----------the----------- mo-----------nth----------- fo-----------r $-----------20 -----------eac-----------h. -----------Cos-----------t o-----------f t-----------he -----------swe-----------at -----------shi-----------rtU-----------nit-----------s$P-----------urc-----------has-----------e
Not Rated(0)