Question

On August 5, 2021, Wildhorse Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $320 each. The cost of shipping the dining sets amounted to $1710 and was paid for by Wildhorse Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $820 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $570, and installation and setup costs of $750. The total profit on units sold for the consignor is

Answer 1

$6,150

Step-by-step explanation:

Calculation to determine what The total profit on units sold for the consignor is

Total profit=[ (20)×($820 - $320 )] - (20 × $820)(.05) - $1,710 - $570 - $750

Total profit=(20*$500)-($16,400*.05)-$1,710-$570-750

Total profit=$10,000-$820-$1,710-$570-750

Total profit=$6,150

Therefore The total profit on units sold for the consignor is $6,150