Asked by Reylan Davis on May 31, 2024
Verified
A contract merchant specializing in Stationery articles sold a consignment of articles for an office. The sales price was $22,650 with a commission rate of 16% for office articles. For this consignment, there was $650 freight that the merchant had to pay. What were the net proceeds due to the office?
Commission Rate
The percentage or fixed amount of compensation paid to an agent or employee for facilitating or completing a sale or transaction.
Freight
The transportation of goods, cargo, or commodities by land, sea, or air.
Net Proceeds
The amount of money remaining after all deductions, like expenses and taxes, are subtracted from the gross proceeds.
- Ascertain the net income obtained from sales transactions by subtracting commission fees.
- Ascertain the final proceeds from sales transactions after the deduction of shipping expenses.
Verified Answer
YH
Yodany HamiltonJun 07, 2024
Final Answer :
$22,650 0.16 = $3,624; $3,624 + $650 = $4,274; $22,650 $4,274 = $18,376
Learning Objectives
- Ascertain the net income obtained from sales transactions by subtracting commission fees.
- Ascertain the final proceeds from sales transactions after the deduction of shipping expenses.
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