Purrfect Pets sells 6,000 bags of dog food this month for $10 each; 2,600 of these bags were sold to customers who took advantage of an 3% early payment discount.Twenty bags were returned by customers who had paid cash; their dogs did not like the dog food.Purrfect Pets had paid $5 a bag for this dog food and received a 2% purchase discount for early payment.Purrfect Pets also paid a trucking company $1,660 for shipping the 6,000 bags.
Calculate the gross profit and the gross profit margin for Purrfect Pets,assuming dog food is the company's only product and that returned product was unopened so it was put back in inventory.

Question

Quizplus · Accepted Answer

The Answer of Purrfect Pets sells 6,000 bags of dog food this month for $10 each; 2,600 of these bags were sold to customers who took advantage of an 3% early payment discount.Twenty bags were returned by customers who had paid cash; their dogs did not like the dog food.Purrfect Pets had paid $5 a bag for this dog food and received a 2% purchase discount for early payment.Purrfect Pets also paid a trucking company $1,660 for shipping the 6,000 bags.
Calculate the gross profit and the gross profit margin for Purrfect Pets,assuming dog food is the company's only product and that returned product was unopened so it was put back in inventory.

Purrfect Pets Sells 6,000 Bags of Dog Food This Month