Based on the given information, Jack Corporation purchased $100,000 worth of finished goods inventory and sold 50% of it to Genie Productions for $150,000, and 25% of it to a third-party for $75,000. Genie Productions then sold 50% of its inventory to a third-party for $100,000.
To calculate Jack Corporation's gross profit, we need to first calculate the cost of goods sold (COGS). Jack Corporation's COGS would be 50% of the inventory sold to Genie Productions, which is $50,000 (50% x $100,000).
Jack Corporation's gross profit would be the revenue earned from selling the inventory minus the COGS. Jack Corporation earned $150,000 from selling the inventory to Genie Productions and $75,000 from selling the inventory to the third-party, for a total revenue of $225,000. Therefore, Jack Corporation's gross profit would be $175,000 ($225,000 - $50,000).
As for Genie Productions, they purchased 50% of the inventory from Jack Corporation for $150,000 and sold 50% of their inventory to a third-party for $100,000. To calculate Genie Productions' gross profit, we need to first calculate their COGS. Genie Productions' COGS would be 50% of the inventory purchased from Jack Corporation, which is also $50,000 (50% x $100,000).
Genie Productions' gross profit would be the revenue earned from selling the inventory minus the COGS. Genie Productions earned $100,000 from selling the inventory to the third-party. Therefore, Genie Productions' gross profit would be $50,000 ($100,000 - $50,000).