Luis castillo, a commission merchant in dallas, buys merchandise exclusively for principals. a recent transaction is listed below. compute luis' commission on the purchase and the gross cost. local delivery air freight prime cost commission rate commission storage gross cost $8,600 6.5% 44 77 91 $ $

commission on the purchase  = $559

gross cost = $9371

Step-by-step explanation:

Given data

Prime Cost  = $8,600

Commission Rate = 6.5%

Local Delivery = 44

storage  = 77

air freight = 91

to find out

Luis' commission on the purchase and the gross cost

solution

we find first commission on the purchase that is = commision @ 6.5%

commission on the purchase = 8600 × 0.065 = $559

commission on the purchase  = $559

and

gross cost = Prime Cost + Commission + Local Delivery +storage +air freight

gross cost = 8600 + 559 +  44+ 77 + 91

gross cost = $9371