​A Contract Merchant Specializing in Stationery Articles Sold a Consignment

question 27

Short Answer

​A contract merchant specializing in Stationery articles sold a consignment of articles for an office. The sales price was $22,650 with a commission rate of 16% for office articles. For this consignment, there was $650 freight that the merchant had to pay. What were the net proceeds due to the office?

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a good or service.

Price Discrimination

A strategy for setting prices where the same or very similar products or services are offered at different prices by the same seller in various markets.

Pricing Scheme

A strategy or method used by businesses to set prices for their products or services, often designed to optimize profits, market share, or customer satisfaction.