Question

FindMe Inc., (FI) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be prompted to emit a signal using a smartphone app. FI sells these tags, as well as water-resistant cases for the tags, with terms FOB shipping point. Assume FI has no inventory at the beginning of the month, and it has outsourced the production of its tags and cases. FI uses FIFO and has entered into the following transactions:

Jan.	2:		FI purchased and received 290 tags from Xioasi Manufacturing (XM) at a cost of $9 per tag, n/15.
Jan.	4:		FI purchased and received 90 cases from Bachittar Products (BP) at a cost of $2 per case, n/20.
Jan.	6:		FI paid cash for the tags purchased from XM on Jan. 2.
Jan.	8:		FI mailed 190 tags via the U.S. Postal Service (USPS) to customers at a price of $26 per tag, on account.
Jan.	11:		FI purchased and received 390 tags from XM at a cost of $12 per tag, n/15.
Jan.	14:		FI purchased and received 190 cases from BP at a cost of $3 per case, n/20.
Jan.	16:		FI paid cash for the cases purchased from BP on Jan. 4.
Jan.	19:		FI mailed 150 cases via the USPS to customers at a price of $10 per case, on account.
Jan.	21:		FI mailed 290 tags to customers at a price of $26 per tag.

Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases.

Answer 1