On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee mugs to sell at its...

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.

Expert Solution

	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

ekkarill92 answered 7 months ago

1. Hot Coffee has been leasing a store to sell their custom coffee mugs. They purchased...

1. Hot Coffee has been leasing a store to sell their custom coffee mugs. They purchased and installed cabinets, shelves, and a counter to display and sell the mugs. What is the test used to determine if something is a fixture? Are these items considered personal property or fixtures? Will they belong to Hot Coffee or to the landlord when the lease expires? If Hot Coffee and the landlord decided to each contribute 50% to the purchase of a new...

Date Expenditure Spent The Amount of Expenditure February 15 $90,000 April 1 $125,000 June 30 $200,000...

Date Expenditure Spent The Amount of Expenditure February 15 $90,000 April 1 $125,000 June 30 $200,000 October 1 $300,000 November 15 $585,000 Liabilities Amount Annual Interest Rate Bond A $678,000 7.1% Loan 1 $650,000 6% Loan 2 $1,000,000 7% Answer the following questions based on the information above: Capitalizing interest on the new factory: 1) During the year, Frosty Co. paid all of the interest accrued on Bond A and Loan 1, but only $50,000 of the interest accrued on...

1. Suppose the demand for coffee mugs is represented by the following demand curve: Qd =...

1. Suppose the demand for coffee mugs is represented by the following demand curve: Qd = 50 – 2P. Further, suppose that the current price is $5. a. (5 points) What is the current quantity demanded? Show your work. b. (15 points) Calculate the current price elasticity of demand and show all your work. Interpret the number you calculated (I’m looking for more than just “elastic” or “inelastic". c. Suppose when the price of ice cream is $2 there are...

Signatures Inc. specializes in producing personalized products such as coffee mugs and pens with company logos....

Signatures Inc. specializes in producing personalized products such as coffee mugs and pens with company logos. The company generates over $40 million in annual revenues and has more than 300 employees. The company is in the middle of a large multimillion-dollar SCM implementation, and it has just hired your project management outsourcing firm to take over the project management efforts. On your first day, your team is told that the project is failing for the following reasons: The project is...

Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell...

Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell 2,600 red cups and 700black mugs in the next period. The unit contribution margins for red cups and black mugs are $ 3.00 and $ 3.90 respectively. What is the weighted average unit contribution margin? (Round the final answer to the nearest cent.) A.$ 11.14 B.$ 4.05 C.$ 0.83 D.$ 3.19

1. Theo corporation entered into a contract with Maddon Company to sell Maddon goods for $200,000....

1. Theo corporation entered into a contract with Maddon Company to sell Maddon goods for $200,000. About a week later, Maddon ordered additional goods and the two companies agreed to a $50,000 price. Then the two companies agreed, for simplicity, to add the additional goods to the original order, which had not yet been shipped. How should Theo account for the contract modification? 2. Theo corporation entered into a contract with Maddon Company to sell Maddon goods for $200,000. About...

Assume the following for an equipment purchase on 1/1/16: $250,000 -Purchase Cost &nb

Assume the following for an equipment purchase on 1/1/16: $250,000 -Purchase Cost $50,000 -Salvage Value 5 Year -Useful Life Machine hour life expectancy 100,000 hours, 20,000 hours ran in year 1 41. Under the Straight line method of Depreciation, Depreciation expense for year 1 is: a. $5,000 b. $40,000 c. $80,000 d. $100,000 42. Under DDB (Double Declining Balance) Depreciation expense for year 1 is: a. $50,000 b. $40,000 c. $80,000 d. $100,000 43. Under DDB (Double Declining...

1. List 15 new uses for a popular product or service. Try paper clips, coffee mugs,...

1. List 15 new uses for a popular product or service. Try paper clips, coffee mugs, or home delivery.

You have recently been appointed management accountant for Rugby Coffee Mugs Pty Ltd. The company commenced...

You have recently been appointed management accountant for Rugby Coffee Mugs Pty Ltd. The company commenced its operations on 1 July 2019 manufacturing one size coffee mugs with individual club names and club logos of rugby union clubs playing in the New South Wales, Queensland, Victoria and Western Australia local rugby union competition. The company currently does not have any management accounting controls and part of your appointment involves improving the company’s manufacturing internal control systems to facilitate the projection,...

Your company has spent $250,000 on research to develop a new computer game. The firm is...

Your company has spent $250,000 on research to develop a new computer game. The firm is planning to spend $1,400,000 on a machine to produce the new game. Shipping and installation costs for the new machine total $200,000 and these costs will be capitalized and depreciated together with the cost of the machine. The machine will be used for 3 years, has a $200,000 estimated resale value at the end of three years, and will be depreciated straight line over...

Question