Slotnick Chemical received customer deposits on returnable containers in the amount of $300,000 during 2013. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits?
A)$0.
B)$7,500.
C)$9,000.
D)$45,000.

Question

Quizplus · Accepted Answer

The forfeited deposits are 15% of $300,000, or $45,000. The cost of the containers is 80% of $45,000, or $36,000. The profit is the difference between the forfeited deposits and the cost of the containers, or $9,000.

Slotnick Chemical Received Customer Deposits on Returnable Containers in the Amount