In 2021, Detroit transferred goods to a retailer on consignment. The goods cost P450,000 and normally are sold at a 40% markup on cost. Detroit paid P5,000 for the cost of the shipment while the retailer paid P3,800 for advertising and P2,800 for the cost of freight out. The parties agreed that Freeshop would reimburse the cost of advertising and freight paid by the retailer. In 2021, the retailer at the normal markup, sold 80% of the merchandise and the balance of the merchandise was returned to Detroit. The retailer withheld 15% commission from payment plus the amount reimbursable by the consignor. Determine the net income earned by the consignor. A.62,650 B.421,800 C.56,800 D.405,000
In 2021, Detroit transferred goods to a retailer on consignment. The goods cost P450,000 and normally are sold at a 40% markup on cost. Detroit paid P5,000 for the cost of the shipment while the retailer paid P3,800 for advertising and P2,800 for the cost of freight out. The parties agreed that Freeshop would reimburse the cost of advertising and freight paid by the retailer. In 2021, the retailer at the normal markup, sold 80% of the merchandise and the balance of the merchandise was returned to Detroit. The retailer withheld 15% commission from payment plus the amount reimbursable by the consignor. Determine the net income earned by the consignor.
A.62,650
B.421,800
C.56,800
D.405,000
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