**Consignment Problem Analysis: Blossom Furniture***Transaction Details:*- **Date:** August 5, 2021- **Company:** Blossom Furniture- **Consignee:** Furniture Outlet, Inc.- **Items Shipped:** 40 dining sets- **Cost per Dining Set:** $330- **Total Shipping Cost:** $1780 (Paid by Blossom Furniture)*Sales Report:*- **Date:** December 30, 2021- **Dining Sets Sold:** 30- **Selling Price per Set:** $830**Deductions Made by Consignee:**1. **Commission:** 5%2. **Advertising Expense:** $5803. **Installation and Setup Costs:** $760**Question:**Calculate the total profit on units sold for the consignor.**Answer Options:**- $20,535- $11,080- $12,415- $22,315*Note:* The task is to determine the correct profit calculation considering the costs and deductions.

The commission expense incurred by blossom furniture is ( 30 × $830 ) × . 05 = $1245 Total expense incurred by blossom furniture is Advertisement $580 Installation and setup $760 Commission to agent $1245 Shipping cost $1780 Of dinning sets Total cost $4365 Sales revenue $15000 30 × ( $830 - $330) Profit $13220 (15000 - 1780)

Business

Accounting

On August 5, 2021, Blossom Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $330 each. The cost of shipping the dining sets amounted to $ 1780 and was paid for by Blossom Furniture. On December 30, 2021, the consignee reported the sale of 30 dining sets at $ 830 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $ 580, and installation and setup costs of $ 760. The total profit on units sold for the consignor is O $ 20535. O $11080. O $12415. O $ 22315.

On August 5, 2021, Blossom Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $330 each. The cost of shipping the dining sets amounted to $ 1780 and was paid for by Blossom Furniture. On December 30, 2021, the consignee reported the sale of 30 dining sets at $ 830 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $ 580, and installation and setup costs of $ 760. The total profit on units sold for the consignor is O $ 20535. O $11080. O $12415. O $ 22315.

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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