On May 31, 2017, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $740 and was paid by Eisler Company. On December 30, 2017, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold.
Instructions
(a) Calculate the inventory value of the units unsold in the hands of the consignee.
(b) Calculate the profit for the consignor for the units sold.
(c) Calculate the amount of cash that will be remitted by the consignee.