Question: Problem 1 The table in worksheet Problem 1 is a list of orders from a company that sells sports products. Each row is an order.

Problem 1

The table in worksheet "Problem 1" is a list of orders from a company that sells sports products. Each row is an order. Only one type of product is sold in each order, but the quantity and price of each unit vary across orders. Information about each order includes location, customer, segment, product sold, order date, the list price per unit, the price each unit was actually sold in the order (unit price), quantity of units sold, revenue (sales), and percent discount on each other.

  • The company charges customers to ship the orders and uses a shipping rate for each order that depends on the region and business segment. Shipping is 6% of revenue for orders shipped to the North America Region in the Business Segment of Bikes. The shipping rate is 2% for all other orders. Show the appropriate rate for each order in column ShipRate.
  • The company pays sales tax on revenue of each order. Tax is 9% of revenue if revenue is less than $1,000, 8% if revenue is greater than or equal to $1,000 but less than $2,000, and 7% if revenue is greater than or equal to $2,000. Add a column TaxRate with the tax rate.
  • On column GrossSale calculate the revenue of each order plus shipping (in dollars) minus tax (in dollars).

Market Customer Business Segment Category Model Color SalesDate ListPrice UnitPrice OrderQty Discount Revenue ShipRate TaxRate GrossSale
Central Great Bicycle Supply Bikes Mountain Bikes Mountain-100 Black 05/16/09 $3,375 $3,289 6 3% $19,736
Northwest Metro Cycle Shop Components Brakes Front Brakes Silver 09/01/09 $107 $64 4 40% $256
Southwest Sturdy Toys Bikes Mountain Bikes Mountain-200 Black 08/12/09 $2,295 $2,292 4 0% $9,168
Northwest Metro Cycle Shop Bikes Mountain Bikes Mountain-200 Silver 07/10/10 $2,320 $1,392 4 40% $5,568
Canada Quick Parts and Service Bikes Touring Bikes Touring-1000 Blue 03/29/10 $2,384 $1,430 1 40% $1,430

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!