HappyHome is a factory specialized in manufacturing some ranges of home applianc
ID: 2559462 • Letter: H
Question
HappyHome is a factory specialized in manufacturing some ranges of home appliances. HappyHome is having a sale transaction selling of washing machines and freezers to a wholesale distributor, named Homy. Details of this transaction are depicted in this table:
Quantity
Unit selling price
Unit cost price
washing machine
10
SAR980
SAR450
freezer
15
SAR680
SAR350
Record financial impacts of this sale transaction for HappyHome.
N.B. Show financial impacts for all steps of the transaction in only one figure.
Quantity
Unit selling price
Unit cost price
washing machine
10
SAR980
SAR450
freezer
15
SAR680
SAR350
Explanation / Answer
Total profit earned by Happyhome is SAR10250
(i.e., SAR5300 + SAR4950)
Profit per unit on sale of washing machine = unit selling price - unit cost price
= SAR980-SAR450
=SAR530
Total profit = total quantity sold of washing mach * profit per unit
= 10 Units*SAR530 = SAR5300
Profit per unit on sale of freezer = SAR680 - SAR350
= SAR330
Total profit = 15Units*SAR330 = SAR4950
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