Acme Track Incorporated Received 360 Pairs of Nike Running Shoes

question 99

Short Answer

Acme Track Incorporated received 360 pairs of Nike running shoes. Each pair sells for $58. Acme found 1/9 of the pairs to be defective and returned them. Assuming each pair cost Acme $26, what profit did Acme make assuming all non-defective sneakers were sold? (profit = sales - cost)

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Definitions:

Share Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares at a set price within a specified period.

Fair Value

The financial gain from a sale of an asset or the investment in transferring a liability in an orderly exchange among market participants on the date set for assessment.

Remuneration Expense

The total cost incurred by an entity for the payment of salaries, wages, and other forms of compensation to employees.

Vesting Period

The vesting period is the time during which an employee must wait to earn the right to fully own employer-provided stock options or contributions to a retirement plan.