On May 8, Leon's Kitchen Hut bought a set of pots with a $108 list price from Lambert Manufacturing. Leon's receives a 35% tradediscount. Terms of the sale were 2/10, n/30. On May 14, Leon's sent a check to Lambert for the pots. Leon's expenses are 25% of theselling price. Leon's must also make a profit of 12% of the selling price. A competitor marked down the same set of pots 35%. AssumeLeon's reduces its selling price by 19%.a. What is the sale price at Kitchen Hut?Note: Round your answer to the nearest cent.Sale priceb. What was the operating profit or loss?Note: Input the amount as a positive value. Round your answer to the nearest cent.

Answer : a) Selling price : List price $108 Less : Trade discount ($108*35%) ($37.8) Price…

ere 2/10, n/30. On May 14, Leon's sent a check to Lambert f make a profit of 12% of the selling price. A competitor mar e by 19%. tchen Hut? to the nearest cent. ofit or loss? sa positive value. Round your answer to the nearest cent.

ere 2/10, n/30. On May 14, Leon's sent a check to Lambert f make a profit of 12% of the selling price. A competitor mar e by 19%. tchen Hut? to the nearest cent. ofit or loss? sa positive value. Round your answer to the nearest cent.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 10EB: Canary Lawnmowers sold 70 lawnmower parts at $5.00 per part to a customer on December 4 with a cost...

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Question

On May 8, Leon's Kitchen Hut bought a set of pots with a $108 list price from Lambert Manufacturing. Leon's receives a 35% trade
discount. Terms of the sale were 2/10, n/30. On May 14, Leon's sent a check to Lambert for the pots. Leon's expenses are 25% of the
selling price. Leon's must also make a profit of 12% of the selling price. A competitor marked down the same set of pots 35%. Assume
Leon's reduces its selling price by 19%.
a. What is the sale price at Kitchen Hut?
Note: Round your answer to the nearest cent.
Sale price
b. What was the operating profit or loss?
Note: Input the amount as a positive value. Round your answer to the nearest cent.

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