Precious Inc is a merchandiser of a single line of golden ri

Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the day, the shop had 10ri s n its e o During the day 4 new gs were delivered to the shop. By close of business, only 9 rings remained in inventory. The purchase price of each ring from the supplier is $271. In addition, the company pays $5 for shipping and delivery insurance on each ring that they purchase. What is the company\'s Gross Profit for the day if it sells each ring for $564? The Gross Profit for the day is

Solution

No of rings sold : 10+4-9 = 5

(Opening stock + purchases - closing = sale quantity

Gross profit : (564-271-5) * 5 = 1440

(Sale price - purchase price - freight inwards)