Fragment Company is a wholesaler that sells merchandise in large quantities.Its catalog indicates a list price of $300 on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more.The cost of shipping the merchandise is $7 per unit under terms FOB shipping point.If a customer purchases 100 units of this product,what is the amount of sales revenue that Fragment will record from this sale?
A)$18,000
B)$30,000
C)$18,700
D)$29,300
E)$30,700

Question

Quizplus · Accepted Answer

The sales revenue is calculated as the list price minus the trade discount. The list price is $300 per unit, and with a 40% trade discount, the price per unit becomes $180 ($300 - 40% of $300). For 100 units, the sales revenue is 100 units * $180 = $18,000. Shipping costs are not included in sales revenue.

Fragment Company Is a Wholesaler That Sells Merchandise in Large