Company XYZ is a smart phone merchant. The company purchases smart phones directly from the manufacturer and sells them to customers. During the month of April, the company purchased 45 smart phones and paid $600 for each one. The company managed to sell 40 smart phones during the same month for $900 each. The company incurred total Selling and Administrative costs of $4,000 of which 20% is fixed costs. Assume that XYZ did not have a beginning inventory during April, what was the gross margin ($) for April?

Company XYZ is a smart phone merchant. The company purchases smart phones directly from the manufacturer and sells them to customers. During the month of April, the company purchased 45 smart phones and paid $600 for each one. The company managed to sell 40 smart phones during the same month for $900 each. The company incurred total Selling and Administrative costs of $4,000 of which 20% is fixed costs. Assume that XYZ did not have a beginning inventory during April, what was the gross margin ($) for April?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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