Tx08 Credit Sale $600 & COS $300
The net profit brought forward is $350.
Start with 8a. What do we have more of, or perhaps less of, as a result of this transaction?
Note: The Cost Of Sale amount mentioned in the video is $150. This was increased to $300 from versions 5 onwards. The mechanics remain the same.
Video Tx8a-1: Solution (the solution for 8b is the same as for Tx6b earlier)
Start with 8a. What do we have more of, or perhaps less of, as a result of this transaction?
Note: The Cost Of Sale amount mentioned in the video is $150. This was increased to $300 from versions 5 onwards. The mechanics remain the same.
Video Tx8a-1: Solution (the solution for 8b is the same as for Tx6b earlier)
Tx8-2: Observations
The gross profit margin, and the concept of markup, are very important in business. Note: the following discussion is using the $150 COS amount, but the principles remain the same.
Video Tx8-3: Markup and margin
The net profit carried forward is $650.