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 60 smart phones and paid $ 900 for each one. The company managed to sell 55 smart phones during the same month for $ 1,200 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 60 smart phones and paid $ 900 for each one. The company managed to sell 55 smart phones during the same month for $ 1,200 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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14. 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 60 smart phones and paid $ 900 for each one. The company managed to sell 55 smart phones during the same month for $ 1,200 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?
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