Company XYZ is a smart phone merchant . The company purchases smart phones directly from themanufacturer and sells them to customers . During the month of April , the company purchased 50 smart phones and paid $700 for each one . The company managed to sell 45 smart phones during the same month for $1,000 each . The company incurred total Selling and Administrative costs of $4,000 of which 20 % is fixedcosts . Assume that XYZ did not have a beginning inventory during April , what was the gross margin ( $) for April ? a. 13,500 b. None of the given answers c. 10,300 d. 9,500 e. 6,800
Company XYZ is a smart phone merchant . The company purchases smart phones directly from themanufacturer and sells them to customers . During the month of April , the company purchased 50 smart phones and paid $700 for each one . The company managed to sell 45 smart phones during the same month for $1,000 each . The company incurred total Selling and Administrative costs of $4,000 of which 20 % is fixedcosts . Assume that XYZ did not have a beginning inventory during April , what was the gross margin ( $) for April ? a. 13,500 b. None of the given answers c. 10,300 d. 9,500 e. 6,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Company XYZ is a smart phone merchant . The company purchases smart phones directly from themanufacturer and sells them to customers . During the month of April , the company purchased 50 smart phones and paid $700 for each one . The company managed to sell 45 smart phones during the same month for $1,000 each . The company incurred total Selling and Administrative costs of $4,000 of which 20 % is fixedcosts . Assume that XYZ did not have a beginning inventory during April , what was the gross margin ( $) for April ?
a. 13,500
b. None of the given answers
c. 10,300
d. 9,500
e. 6,800
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education