Revonce Company sells merchandise on a consignment basis to dealers .The selling price of the merchandise averages 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during 2020:
Manufacturing cost of goods shipped on consignment         8,800,000
Sales price of merchandise sold by dealers            9,600,000
Payments remitted by dealers after deducting commission     6,300,000

What is the gross profit on sales?

Answer rating: 100% (QA)

Heres how to calculate the gross profit on sales for Revonce Company Step 1 Calculate the cost of go... View the full answer