Question

On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee
mugs to sell at its retail store. During the year, Haimes Company
recorded the following sales of coffee mugs:

         Month          Mugs solds        Selling price per mug
         June             16,000                  $2.00
         July             35,000                  $2.50
         August            2,000                  $3.00
         September        31,000                  $2.00
         October          46,000                  $3.00
         November         47,000                  $4.00
         December         40,000                  $3.50

Calculate the gross profit earned by Haimes Company for the months
August through November.

Answer 1

	August	September	October	November
Mugs Sold	2000	31000	46000	47000
Selling Price per mug	$                 3.00	$                   2.00	$              3.00	$               4.00
Sales	$          6,000.00	$         62,000.00	$ 1,38,000.00	$ 1,88,000.00
Less: Cost of goods sold (Purchase price per mug * Mugs sold )	$          1,600.00	$         24,800.00	$    36,800.00	$     37,600.00
Gross Profit	$         4,400.00	$         37,200.00	$1,01,200.00	$ 1,50,400.00

Purchase price per mug = $200,000/250,000 = $0.80 per mug