Does cheap toys lose money on this deal

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

Questions Cloud

Political parties and candidates : Discuss the ways that political parties and candidates are able to gain contributions. Considering this, what are some of the debates over how it is obtained and if there should be stronger limitations

What mass of aluminum oxide is produce : 30.3 g of chromium(III) oxide reacts with 10.8 g of aluminum to produce chromium and aluminum oxide. If 20.7 g of chromium is produced, what mass of aluminum oxide is produced?

Two organisations from your preliminary work : This assessment item requires you to use the two organisations from your preliminary work (first assignment). You have provided a profile of these organisations.

Issues in fight for equal rights for minorities : What have the issues been surrounding the rights of Native Americans, Hispanic Americans, and Asian Americans? What have they been for African Americans and women?

Does cheap toys lose money on this deal : 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.

What is the empirical formula of cinnabar : if .350g sample of cinnabar is heated the org decomposes completly to leave .302 of pure mercury metal.what is the empirical formula of cinnabar?

Business accounts receivable : Rons sells his business accounts receivable of $100,000 to Mike for $80,000 (80% of the face value of the accounts reveivable). Mike later determines that he will be able to collect only 9000, of a 10,000 receivable. Mike's basis in the 10,000 acc..

Did the accountant record the transaction correctly : 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.

How much energy is released : How much energy is released during the complete combustion of 470 grams of cyclobutane

User Account

All Pages