B. Dalton is a retailer of popular books. At the beginning of the day, the store had 171 copies of the new bestseller, Fear Street, in its inventory. During the day, 20 new copies were delivered to the shop. By close of business, only 7 copies remained in inventory. The purchase price of each book from the supplier is $3. In addition, the company pays $1 for shipping on each book. B. Dalton pays its associates a commission of 5% of the sales price of each book. These costs have remained consistent since the company began business. B. Dalton sells each book for $5.50. Which of the following statements is incorrect? Question 3 options: The company's total gross profit for the day is $276. The product cost per book is $4. The value of ending inventory reported on the company's balance sheet is $736. The 5% commission paid to its associates would be reported as an operating expense on the Income Statement. The gross profit per book is $1.50.
B. Dalton is a retailer of popular books. At the beginning of the day, the store had 171 copies of the new bestseller, Fear Street, in its inventory. During the day, 20 new copies were delivered to the shop. By close of business, only 7 copies remained in inventory. The purchase price of each book from the supplier is $3. In addition, the company pays $1 for shipping on each book. B. Dalton pays its associates a commission of 5% of the sales price of each book. These costs have remained consistent since the company began business. B. Dalton sells each book for $5.50. Which of the following statements is incorrect? Question 3 options: The company's total gross profit for the day is $276. The product cost per book is $4. The value of ending inventory reported on the company's balance sheet is $736. The 5% commission paid to its associates would be reported as an operating expense on the Income Statement. The gross profit per book is $1.50.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:B. Dalton is a retailer of popular books. At the beginning of the day, the store had 171 copies of the new
bestseller, Fear Street, in its inventory. During the day, 20 new copies were delivered to the shop. By close
of business, only 7 copies remained in inventory. The purchase price of each book from the supplier is $3.
In addition, the company pays $1 for shipping on each book. B. Dalton pays its associates a commission
of 5% of the sales price of each book. These costs have remained consistent since the company began
business. B. Dalton sells each book for $5.50. Which of the following statements is incorrect? Question 3
options: The company's total gross profit for the day is $276. The product cost per book is $4. The value
of ending inventory reported on the company's balance sheet is $736. The 5% commission paid to its
associates would be reported as an operating expense on the Income Statement. The gross profit per
book is $1.50.
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