Salvage Sales Ltd $\quad\$------$ $$\text { (b) Mark-up is } 25 \text { percent on selling price?\quad \$-----}$$

question 32

Essay

Salvage Sales Ltd.suffered a loss of some inventory by fire on May 7.Cost of inventory on hand on January 1 was $100,000 and purchases between January 1 and May 7 amounted to $70,000 while freight-in and purchase returns,respectively,amounted to $6,000 and $4,000.Between January 1 and May 7 sales totalled $84,000.Goods which cost $24,500 were undamaged by the fire while the remainder of the inventory was destroyed.What was the approximate cost of the goods destroyed if: (a) Mark-up is 25 percent on cost? $\quad\$------$ $$\text { (b) Mark-up is } 25 \text { percent on selling price?\quad \$-----}$$

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Definitions:

Medial Rectus

A muscle in the eye that enables inward movement of the eyeball.

Forced Expiration

The act of expelling air from the lungs with effort after a maximal inhalation, often measured during pulmonary function tests.

Internal Intercostals

Internal intercostals are muscles located between the ribs that help with the process of forced expiration by drawing the ribs downward and inward.

Scalenes

A group of muscles in the neck that assist in the process of respiration by elevating the ribs and flexing the neck.