Question

On August 5, 2021, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $350 each. The cost of shipping the dining sets amounted to $1,800 and was paid for by Famous Furniture. On December 30, 2021, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The total profit on units sold for the consignor is

Answer 1

The total profit on units sold for the consignor is $ 6790

Step-by-step explanation:

Famous Furniture

Sales (850*30) $ 25500

Goods Sent on Consignment 40 *350= $ 14000

Shipping Cost $ 1800

To Furniture Outlet,

Advertising Expenses 600

Installation Setup $ 780

Commission (6% of 25,500) 1530 18170

Profit on Consignment $ 6790

The Profit for the consignor will be $ 6790 after bearing all the expenses incurred both by the consignor and the consignee.

Answer 2

$10,290

Step-by-step explanation:

Famous Furniture

Sales of Dining set $850 each

Less cost of each dining set $350 each

Balance $500

Sales 30×500

=$15,000

Hence:

$15,000– (30 ×$850)(.06) – $1,800 – $600 – $780

=$15,000-$1,530-$1,800-$600-$780

=$10,290

Therefore the total profit on units sold for the consignor is $10,290