Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the...

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Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery Commission Net remittance 10,000 800 1,200 7,200 72,000 19,200 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment (5 points)? Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery Commission Net remittance 10,000 800 1,200 7,200 72,000 19,200 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment (5 points)?

Answer rating: 100% (QA)

To determine Aircon Incs profit or loss on the consignment we need to calculate the cost of the cons... View the full answer