7. A smartphone cost a retailer $820.00 less a series discount of 31.5%, 7%. The regularselling price is $799.00. The dealer's overhead is 18% of the regular selling price and thesmartphone is eventually marked down and sold for $658.75.(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to sellat the regular price. Round answer to two decimal places.(b) What is the markup rate based on regular selling price? Round final answer to onedecimal place.(c) What was the rate of markdown? Round final answer to one decimal place.(d) What was the operating profit or loss at the mark down price? Indicate clearly if it is a profitloss.

Cost of Smartphone to Retailer $ 820.00 Regular Selling Price $ 799.00 Overhead is 18%…

Answered: (a) Determine the amount of markup (in…

(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to se at the regular price. Round answer to two decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 5P

See similar textbooks

Related questions

Q: The X division of XYZ Company is currently operating at 60% capacity or 6,000 units. It produces a s...

A: Transfer pricing is the value which is attached to the goods or services transferred between relat...

Q: Food Delivery Services (FDS) share price is worth $18 today. In a year, the market for meal prep del...

A: In case of probabilistic data, returns are calculated using the various expected returns with corres...

Q: A corporation issued 220 shares of its $5 par value common stock in payment of a $3,000 charge from ...

A: Increase in expenses should be debited. Increase in equity should be credited. Amount in excess of...

Q: Prepare journal entries to record the events and transactions 1-11 1. Record raw material purchases...

A: In the given question above, we need to make journal entries for the mentioned tranactions. Such ent...

Q: A company has provided the following data: Sales Sales price Variable cost Fixed cost If the dollar ...

A: There are two type of costs incurred in the business. One is fixed costs and other is variable costs...

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East A...

A: The budget is prepared to estimate the requirements for the future period. The purchase budget tells...

Q: Graded Discussion #3 _C-V-P Analysis Greek Manufacturing Company produces and sells a line of produc...

A: d) Marginal Income statement- Particulars Amount Sales 4,500,000 Less, variable cost ...

Q: C. Trial Balance D. Income Statement and E. Balance Sheet

A: Answer:

Q: What is common stock

A: Common Stock is the total amount paid in by stockholders for the shares they purchase.

Q: 11 Fun with IRR. Suppose you have just graduated from college and are decio career. Your four career...

A: NPV stand for Net present value which refers to the difference between the present value of cash inf...

Q: ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 bill...

Q: Material Time Loading Charges Charges Technicians' wages and benefits $132,000 Parts manager's salar...

A: Solution: Computation of Rate Charged per hour of labor Total Time charges 181500 / Total Hou...

Q: A manufacturer produces a certain commodity at a labor cost of P315 each, material cost of P100 each...

A: Answer) Calculation of number of units to be produced to breakeven Number of units to be produced = ...

Q: An engineer bought equipment for P500,00O. HE spent an additional amount of P30,000 for installation...

A: Total cost of the equipment = P500,000 + P30,000 = P530,000 Annual depreciation = Total depreciat...

Q: Chips, Inc. has developed a new production process to manufacture its product. The new process is co...

A: Y = aXb Here, Y = Cumulative Average Time Per Unit a = Time taken to produce first unit i.e. 100 hou...

Q: Jones Company has the following balances for the current month: $24,000 Direct materials used Direct...

A: Conversion cost includes direct labour cost and manufacturing overhead cost . Manufacturing overhead...

Q: La Femme Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follow...

A: In order to determine the amount of Desired profit, the Investment assets are required to be multipl...

Q: Determine the most accurate statement about variances. Unfavorable variances normally have a credit ...

A: Variance: A variance is defined as the difference between a budgeted, planned, or standard cost and ...

Q: Davenport Inc. offers a new employee two options. First, the employee can receive a one-time signing...

A: Present value is the concept that states an amount of money today is worth more than that same amoun...

Q: Torikatsu Company purchased a machine for P 100,000; current accumulated depreciation totals P 40,00...

A: Sunk Costs are costs that are have already been incurred (i.e., Historical Cost). These costs does n...

Q: 7. Equipment costing PIM is expected to produce 10. 000 pieces of pipes dur ing its economic life be...

A: The formula: Sinking fund method of depreciation: It is a technique for depreciating assets to repla...

Q: Starwood Company's high and low level of activity last year was 65,000 units of product produced in ...

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If yo...

Q: A machine with a cost of $146,000, accumulated depreciation of $93,000, and current year depreciatio...

A: The purchase and sale of assets are reported under cash flow from investing activities. So the proce...

Q: ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 bill...

A: Solution Taxable income refers to any individual's or business compensation that is used to determi...

Q: On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard pr...

A: Material Price Variance (MPV) =(SP-AP) x AQ. SP = Standard Price = 1 AP = Actual Price = 0.9 AQ = Ac...

Q: On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of ...

A: The facts mentioned in the question are as follows: Ziegler Corp has 56,000 shares at $5 par value ...

Q: If a capital project has a hurdle rate higher than its internal rate, then its profitability index i...

A: Solution Explanation- A hurdle rate is the minimum rate of return required on a project or investmen...

Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance f...

A: The estimate of uncollectible is recorded as a debit to bad debt expense and a credit to allowance f...

Q: Anita pays 50% of the total cost for her benefits, her employer pays the other 50%. monthly premium ...

A: Total Combined benefit payable = Health premium + Dental Premium = $167.50 +$75.50 = $243 Since Anit...

Q: 341,000 Fair value of plan assets, Jan. 1 Contributions to the retirement fund during the year Benef...

A: Introduction: Plan assets are assets/investments kept by a long-term employee benefit fund for the p...

Q: A "balanced transaction" (DR=CR) is a guarantee that a transaction has beer recorded 100% correctly....

A: Correct answer if 'False'

Q: An inventory of supplies showed $1,000 were used up. 2. There was $600 of depreciation on Furniture...

A: The financial statements of the business include the income statement and balance of the firm which ...

Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800...

A: Formula: Net income = Total revenues - Total Expenses.

Q: Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an ...

A: Journal is the basic book of recording transactions when it incurred in the books.

Q: A. Assume that you have completed your plans and proformas for the next year of operations. Your pro...

A: Decision making is an important part of conducting every business transactions in an entity. The dec...

Q: Tammy is single and owns and operates ABC, LLC. Her LLC (a sole proprietorship) has QBI of $850,000 ...

A: According to the rule, the QBI is limited to below options whichever is lower: (A) 20% of QBI OR (B)...

Q: Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 ...

A: The question is related to Ratio Analysis. The Return on Investment is calculated with the help of f...

Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year roun...

Q: $ 270,e00 (210, еe0) $ 60,000 $ 180,000 (100, еee) $ 80,000 $ 380,000 (100, eeе) $ 280,e00 Equipment...

A: Equipment A/c ( Gross Basis ) Particulars Amount Particulars Amount To balance b/d $270,000 ...

Q: Select the balance sheet category where the items given would best typically appear. Items Balance S...

A: Balance sheet represent the companies position at the end of year THE balance sheet equation is ASSE...

Q: Jones Company has the following balances for the current month: Direct materials used $24,000 Direct...

A: The question is based on the concept of Cost Accounting. Conversion costs are directly related to th...

Q: A xerox machine cost of P120,000 after making 800,000 photo copies the trade-in value of the xerox m...

A: It is given that Xerox machine can make 800,000 copies in 10 years. That means Machine can make 150,...

Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year roun...

A: * As per Bartleby policy, in case multiple questions are asked then answer first three only. a. Calc...

Q: Ivanhoe Leasing Company agrees to lease equipment to Shamrock Corporation on January 1, 2020. The fo...

A: Lessor Company: Lessor Company is an entity that permits other entity to utilize their asset for som...

Q: Problem 1. Mr. Amjad started his Car Repair Business in Muscat in June 2020. During the month of Jun...

A: Journal entries are the reporting of the transactions in the books of accounts. It is the foremost r...

Q: uppose that the government has a wealth tay at the rate of 2% on the assessed value of wealth

A: Wealth tax is tax on wealth . In USA there is estate tax rathe...

Q: An amount P20,000 is place in an investment for 10 years. How much is the sum of the investment afte...

A: Investment (PV) = P20,000 Interest rate (r) = 7% Period (t) = 10 Years e = 2.71828182845904523536028...

Q: Ash Company reported sales of $550,000 for Year 1, $600,000 for Year 2, and $650,000 for Year 3. Usi...

A: Trend percentages are used to compare two or more financial percentages. These trend are used to pre...

Q: Prepare the December 31 adjusting entry to report these investments at fair value. View transaction ...

A: Solution:- Preparation adjustment entry to report the investments at fair value as follows:- Note:--...

Question

7. A smartphone cost a retailer $820.00 less a series discount of 31.5%, 7%. The regular
selling price is $799.00. The dealer's overhead is 18% of the regular selling price and the
smartphone is eventually marked down and sold for $658.75.
(a) Determine the amount of markup (in dollars) the dealer applies to each smartphone to sell
at the regular price. Round answer to two decimal places.
(b) What is the markup rate based on regular selling price? Round final answer to one
decimal place.
(c) What was the rate of markdown? Round final answer to one decimal place.
(d) What was the operating profit or loss at the mark down price? Indicate clearly if it is a profit
loss.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Details Available

VIEW

Step 2 a) Amount of Markup dealer apply to each smart phone to sell at the regular price

VIEW

Step 3 b) What is the Markup Rate bases on regular selling price

VIEW

Step 4 c) Rate of Markdown

VIEW

Step 5 d) Operating Loss or Profit at Mark down Price

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 70 days after their purchases.a. What is the days sales outstanding?b. What is the average amount of receivables?c. What is the percentage cost of trade credit to customers who take the discount?d. What would happen to McEwan’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?
McEwan Industries sells on terms of 3/10, net 30. Total salesfor the year are $1,921,000; 40% of the customers pay on the 10th day and take discounts,while the other 60% pay, on average, 70 days after their purchases.a. What is the days sales outstanding?b. What is the average amount of receivables?c. What is the percentage cost of trade credit to customers who take the discount?d. What is the percentage cost of trade credit to customers who do not take the discountand pay in 70 days?e. What would happen to McEwan’s accounts receivable if it toughened up on its collectionpolicy with the result that all nondiscount customers paid on the 30th day?
Patel Supply is considering a contract to sell merchandise to a hair salon chain for $29,000. This merchandise will cost Patel Supply $19,100. What would be the increase (or decrease) to Patel Supply gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.)
15.The Jersey Store purchases sports jerseys at a cost of $14.00 per jersey. They sell the jerseys for $32.00 each. The rate of the markup based on selling price is around 56%. True or False
An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The dealer's overhead is 17% of the regular selling price and the answering machine was cleared out for $175.45. What is the regular markup based on selling price? Round to nearest 100th
ssence of Skunk Fragrances, Ltd., sells 6,900 units of its perfume collection each year at a price per unit of $399. All sales are on credit with terms of 2/30, net 50. The discount is taken by 50 percent of the customers. a.What is the amount of the company’s accounts receivable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)b.In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 4/30, net 50 to preserve its market share. Will this change in policy increase or decrease accounts receivable?
LYD Corp. receives an order from a new customer, amounting $55,000. LYD Corp. uses 45-day credit terms as a standard. The Variable Cost Ratio is 75.00% of Sales, Collection Expense Ratio 15.00% of Sales and the Interest Rate is 13.00% (365 days per year). Instruction: (show your calculations and round to 2 decimal places) Should the order be accepted? Defend your answer. Please ASAP
McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to Ksh 912,500,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days? b. What would happen to McDowell’s accounts receivable if it toughened up on its collection policy with the result that all non-discount customers paid on the 30th day?
Sharma Kennels buys some items with a list price of $4,100. The supplier extends a 40% trade discount rate. What is the net price (in $)?
McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to Ksh 912,500,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the days’ sales outstanding? b. What is the average amount of receivables? c. What is the percentage cost of trade credit to customers who take the discount? d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days? e. What would happen to McDowell’s accounts receivable if it toughened up on its collection policy with the result that all non-discount customers paid on the 30th day?
Computers and More offers discounts to its customers and allows the customer to return the product if not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned goods. The cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.