On May 3, 2020, Pina Company consigned 90 freezers, costing $470 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Pina Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $180, and total installation costs of $310 on the freezers sold:

a. Compute the inventory value of units unsold in the hands of the consignee.

Inventory value $

b. Compute the profit for the consignor for the units sold.

Profit on consignment sales $

c. Compute the amount of cash that will be remitted by the consignee

Remittance from consignee $

a. Inventory value of units unsold in the hands of the consignee.

$ 480 * 45= $ 21600

b. The profit for the consignor for the units sold = $12,150

c. The amount of cash that will be remitted by the consignee  $10,960.4

Explanation:

a. Inventory value of units unsold in the hands of the consignee.

$ 480 * 45= $ 21600

b. The profit for the consignor for the units sold = $12,150

c. The amount of cash that will be remitted by the consignee  $10,960.4

Remittance from consignee $

Freezers 90 *$ 470= $ 42300

Freight                     $ 870

Total Cost               $ 43,170  for 90 freezer

Cost of One freezer = $ 43170/ 90= 479.6 = $ 480

Sales            45* $750=  $ 33750

Cost of 45 freezers=  $ 21600

Gross Profit               12150

Installation Charges   $ 310

Advertising                $ 180

Profit                           $11660

Commission                699.6

Net Profit             $  10,960.4

Working : 6 % of $11660= $ 699.6

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.