Asked by Mallory Sheets on Jun 09, 2024
Verified
A commission merchant specializing in food products sold a consignment of products for a farm. The sales price was $18,450 with a commission rate of 12% for farm products. For this consignment, there was $890 freight that the merchant had to pay. What were the net proceeds due to the farm?
Commission Rate
The percentage of a sale price that is paid to the salesperson as a reward for making the sale or dealing.
Freight
Goods transported in bulk by truck, train, ship, or airplane.
Net Proceeds
The amount of money received from a transaction after all costs and expenses have been paid.
- Calculate the total revenue generated from sales after deducting commissions.
- Calculate the net revenue obtained from sales once transportation costs are subtracted.
Verified Answer
PM
Princess MagondacanJun 13, 2024
Final Answer :
$18,450 0.12 = $2,214; $2,214 + $890 = $3,104; $18,450 $3,104 = $15,346
Learning Objectives
- Calculate the total revenue generated from sales after deducting commissions.
- Calculate the net revenue obtained from sales once transportation costs are subtracted.
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