Does cheap toys lose money on this deal

Assignment Help Accounting Basics

Reference no: EM13136258

Cheap Toys Case

Cheap Toys sells merchandise to the general public for cash or credit. It accepts several major credit cards. The company pays an average fee of 4% of sales to the credit card companies and 6% to the State of Florida in sales taxes.

A customer comes to the store and makes a purchase of $10,000. Mark, the store owner, tells the customer that if she pays cash, he will give her a 7% discount. The customer accepts.

Does Cheap Toys lose money on this deal? Why would Mark do it? Is it ethical?

Reference no: EM13136258

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