Zorro Company buys from wholesalers and resells a single product that costs $10 each unit. All purchases are paid in cash. There is a sales commission paid of 20% on each unit sold. Sales commissions and sales proceeds are also all in cash. Each unit sells for $30. In year 1 the firm purchased 20,000 units and sold 15,000 units. In year 2 it purchased 20,000 units and sold 17,500 units. The firm uses FIFO inventory method for inventory costing.

Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ _________

Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ _________

Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $ _________

Answer rating: 100% (QA)

Certainly Lets analyze Zorro Companys sales performance in year 2 Required 1 Gross Sales Revenue in ... View the full answer