Alpha CORP is a supplier of widgets used by MAGMA corp in the production of its merch. Two companies entered the following transactions during march 20x4:

march 10: Alpha corp sold 200,000 widgets to MAGMA corp on account with term 2/10 net 30.

March 14: MAGMA corp returned 20,000 widgets purchased on March 10 because they were defective. Alpha credited Magma's account for returned widgets.

March 15: Magma paid the entire balance owed to alpha for the march 10 purchase of widgets.

Assume it costs Alpha corp 60% of the selling price to make the widgets. What was the gross profit earned by Alpha corp in march 20x4 from the above transactions with Magma?

1. 68,400

2. 180,000

3. 56,400

4. 176,400

5. 68,000

6. 56,000

7. 72,000

Answer rating: 100% (QA)

Answer 7 72000 Working Ne... View the full answer