HappyHome is a factory specialized in manufacturing some ranges of home applianc
ID: 2791316 • Letter: H
Question
HappyHome is a factory specialized in manufacturing some ranges of home appliances. HappyHome is having a sale transaction selling of washing machines and freezers to a wholesale distributor, named Homy. Details of this transaction are depicted in this table:
Quantity
Unit selling price
Unit cost price
washing machine
10
SAR980
SAR450
freezer
15
SAR680
SAR350
Record financial impacts of this sale transaction for HappyHome.
N.B. Show financial impacts for all steps of the transaction in only one figure.
Quantity
Unit selling price
Unit cost price
washing machine
10
SAR980
SAR450
freezer
15
SAR680
SAR350
Explanation / Answer
The financial transactions for Happyhome to Homy are given in Unit selling price and Unit cost price.
we can calculate the Operating profit by deducting cost price from selling price.
Washing Machine:
Selling price = 980, Cost price = 450 and Quantity sold = 10
Thus opertaing income = (980-450)*10 = SAR5300
Freezer:
Selling price = 680, Cost price = 350 and Quantity sold = 15
Thus opertaing income = (680-350)*15 = SAR4950
Hence the total operating income of HappyHome is 5300+4950 = SAR10250
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.