Question

Macy returns 50 units because they did not fit the customer's needs (invoice amount: 650). Allied restores the units, which cost 450, to its inventory. What is the net loss for Macy?

1) 200
2) 250
3) 300
4) 350

Answer 1

The net loss for Macy is $200.

Step-by-step explanation:

To calculate the net loss for Macy, we need to determine the difference between the amount of the returned units and the cost of those units. In this case, Macy returns 50 units with an invoice amount of $650. The cost of those units is $450. Therefore, the net loss for Macy is $650 - $450 = $200.