Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
| a. | Sold merchandise for cash (cost of merchandise $152,070). | $ | 275,000 | |
| b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $800). | 1,600 | ||
| c. | Sold merchandise (costing $9,000) to a customer on account with terms n/30. | 20,000 | ||
| d. | Collected half of the balance owed by the customer in (c). | 10,000 | ||
| e. | Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 1,800 | ||
- Campus Stop is considering a contract to sell merchandise to a campus organization for $15,000. This merchandise will cost Campus Stop $12,000. Would this contract increase (or decrease) Campus Stop’s dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.)
yeah that's the trouble i'm
having, i have to figure out revenue and then find the gross profit
%.
Homework Answers
The contract will increase Campus Stop’s gross profit by $3,000 ($15,000 - $12,000), but it will decrease the gross profit percentage, as calculated below.
Gross Profit
Percentage
= Gross Profit
x 100 =
$131,130 + $3,000
x 100 =
Net Sales $291,400 + $15,000
=
$134,130
x 100 = 43.8%
$306,400
The gross profit percentage decreases because the gross profit percentage on the contract (20% = $3,000 ÷ $15,000) is less than the gross profit percentage earned without the contract (45%).
(e) Sales Returns and Allowances .................................................... 1,800
Accounts Receivable ............................................................ 1,800.
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Campus Stop, Inc., is a student co-op. Campus Stop uses a
perpetual inventory system. The following...
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following...
Campus Stop, Inc., is a student co-op. Campus Stop uses a
perpetual inventory system. The following transactions (summarized)
have been selected for analysis:
Check my work Required information [The following information applies to the questions displayed below.] Part 1 of 4 Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: points $294,300 eBook a. Sold merchandise for cash (cost of merchandise $160,750). b. Received merchandise returned...
Campus Stop, Inc. is a student co-op. Campus Stop uses a perpetual inventory system
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