Reference no: EM133033756

Question - In 2021, Wholesalers transferred goods to a retailer on consignment. The goods cost P450,000 and are normally sold at a 50% markup based on cost. Integrity Wholesalers paid P5,000 for the cost of shipment. The retailer paid P3,800 for advertising and P3,000 for the cost of freight out. The parties agreed that Integrity Wholesalers would reimburse the cost of advertising and freight paid by the retailer. In 2021 the retailer at the normal markup sold 60% of the merchandise, and the balance of the merchandise was retained by the retailer. The retailer withheld a 15% commission from payment plus the amount reimbursable by the consignor. What the net income earned by the consignor on the shipment?