Compute the gross profit on the sale

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Reference no: EM132707832

Question - Su Mei's Furs specializes in full-length mink coats. As of January 1, Su Mei had four top-of-the-line coats. Although the four coats are equivalent, they were purchased the previous year at different costs:

Cost

Coat 1 $7,820

Coat 2 6,420

Coat 3 7,080

Coat 4 6,130

During January a customer decided to buy any one of the mink coats for $13,190. This was the only sale in January.

If Su Mei wished to maximize January's profits and ending inventory, which of the minks would she have sold to the customer? Compute the gross profit on the sale and January's ending inventory.

Reference no: EM132707832

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