Answer:
Weighted Average Equivalent Units Materials 4960 Conversion 5200
Fifo Equivalent Units Materials 4850 Conversion 5140
Explanation:
Normally weighted average method is used when not specified.
Production Flow Percent Complete
Units Materials Conversion
WIP beginning inventory 200 55% 30%
Units started this period 5,000
Total units: 5,200
Completed and transferred 4,800 100%
Work IP, ending inventory 400 40%
Using Weighted Average method for Equivalent Units we add the completed units with the ending inventory
Particulars Units Materials Conversion
Completed 4800 4800 4800
+ WIP Ending 400 160 400
Equivalent Units 4960 5200
Materials EWIP = 400*40%= 160
Conversion EWIP= 400*100 %=400
If we use FIFO method then we deduct the beginning inventory from the weighted average method equivalent unit production
Particulars Units Materials Conversion
Completed 4800 4800 4800
+WIP Ending 400 160 400
- BWIP 200 110 60
Equivalent Units 4850 5140
Materials BWIP = 200*55%= 110
Conversion EWIP= 200*30%= 60
5 poin
What do we call an interest-bearing account at a bank that pays a higher
interest rate than a regular savings account? *
Checking Account
Stocks
Money market
None of the above
PLEASEEE
Answer:
Money market account
Explanation:
Money market deposit account MMDA are high earning saving accounts offered by banks and credit unions. Financial institutions require a minimum amount to open an MMDA account. Customers are also required to maintain a specified balance in their accounts at all times. Withdrawals from money market deposit accounts are restricted.
Money market account pays a higher interest because financial institutions use the deposit from these accounts to invest in short-term money market securities. Examples of Money market securities include commercial papers, certificates of deposits, and treasury bills. They often offer high returns. The interest rates offered on MMDA is influenced by the interest earned on the money market securities.
Roy agrees to work as a financial advisor on a commission basis for Secure Investments, Inc., and signs an employment contract that includes an arbitration clause. A dispute arises over the amount of Roy's commission. Roy files a suit against Secure Investments, seeking $25,000 in unpaid commissions and $50,000 in other damages. Secure Investments insists that the parties submit the dispute to arbitration. On what Roy believes is insufficient evidence, the arbitrator awards Roy only $500 and issues a written opinion that includes an erroneous finding of fact and a mistaken conclusion of law. Can Roy successfully challenge this award in court
Answer:
Yes. Roy can successfully challenge this arbitration award in court.
Explanation:
According to the law, an arbitration clause is a part of the contract between Roy and Secure Investments, Inc. that deals with these parties' rights and options in the event of a legal dispute over their contract. Like in most arbitration clauses, Roy and Secure Investments, Inc. must have agreed not to sue each other but instead, to resolve their disputes through the arbitration process. But the res judicata effect produced through an arbitration can either be challenged and appealed against or enforced. Roy, depending on the merits of his case, can make a successful appeal against the arbitration award and not against the arbitration itself.
Assuming that money is worth 10%, compute the present value of:
a. $15,000 received 15 years from today.
b. The right to inherit $4,250,000 14 years from now.
c. The right to receive $11,000 at the end of each of the next six years.
d. The obligation to pay $10,000 at the end of each of the next 10 years.
e. The right to receive $9,000 at the end of the 7th, 8th, 9th, and 10th years from today.
Answer:
a. ($3,590)
b. ($1,119,158)
c. ($47,908)
d. ($61,446)
e. $17,714
Explanation:
We use the Time Value of Money to compute the Present Value. Present Value is the Worth in Today`s Money of the Cash Flow Streams expected or to be received in the future.
Calculation of the Present Value for each case is shown below :
a.
FV = $15,000
N = 15
P/YR = 1
PMT = $0
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($3,590)
b.
FV = $4,250,000
N = 14
P/YR = 1
PMT = $0
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($1,119,158)
c.
FV = $ 0
N = 6
P/YR = 1
PMT = $11,000
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($47,908)
d.
FV = $ 0
N = 10
P/YR = 1
PMT = - $10,000
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($61,446)
e.
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$9,000 CFj
$9,000 CFj
$9,000 CFj
$9,000 CFj
Shift NPV $17,714
This part of the question has uneven Cash Flows, so i used the CFj Function on the Financial to calculate the Net Present Value (NPV)
There may be a maximum balance requirement for a savings account.
True
False
Answer:
true
Explanation:
For example, if a bank account has a $100 minimum balance requirement, you want to make sure that you don't let your balance fall to $99.99 or less.
Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 36,000 shares of stock. The debt and equity option would consist of 18,000 shares of stock plus $310,000 of debt with an interest rate of 9 percent. What is the break-even level of earnings before interest and taxes between these two options
Answer:
The right approach is "55800".
Explanation:
The given values is:
Rate of interest,
= 9%
= 0.09
The interest cost will be:
= [tex]310,000\times 0.09[/tex]
= [tex]27,900[/tex] ($)
Assumed return on capital employed are X. Break will also be whenever the dual capital requirements participate in almost the same earnings growth.
⇒ [tex]\frac{X}{36000} =\frac{X-27900}{18000}[/tex]
⇒ [tex]X=(X-27900)\times \frac{36000}{18000}[/tex]
⇒ [tex]=(X-27900)\times 2[/tex]
⇒ [tex]=2X-55800[/tex]
⇒ [tex]X=55800[/tex]
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 10,319 Accounts receivable 79,922 Merchandise inventories 69,862 Prepaid expenses 6,000 Accounts payable $ 16,850 Notes payable 96,138 Other current liabilities 11,400 If net credit sales for the current year were $602,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Answer:
49 days
Explanation:
Account receivable turnover ratio = Net credit sales / Accounts receivable
Account receivable turnover ratio = $602,000 / $79,922
Account receivable turnover ratio = 7.53
Average collection period = 365/7.53
Average collection period = 48.47277556440903
Average collection period = 49
Thus, firm’s sales uncollected for year is 49 days.
At the beginning of the year 2019, a town recorded General Fund property tax receivables of $600,000. By year-end (December 31), taxpayers had paid a total $575,000. Based on previous experience, the town expected to collect the $25,000 of delinquent taxes as follows: $15,000 in January and February of 2020 and $10,000 between March and August of 2020. How much should the town report as property tax revenue in its General Fund statements for the year 2019?
Answer:
omg
Explanation:
A regular checking account commonly earns interest true or false
Answer: False
Explanation: Traditionally, checking accounts are not interest-bearing accounts as savings accounts are, as they're designed for short-term cash that you'll spend soon. Savings accounts are better-known for earning interest, but these accounts ordinarily limit how often you can make certain withdrawals from the account.
Hope this helps! Brainlist?
Gore Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, Gore distributed a 50% discount coupon for purchase of an office chair within one month. Based on historical experience, Gore expects that approximately 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150 and normally discounted 10%. What would be the stand-alone sales price used by Gore for the coupon when allocating the $500 transaction price to performance obligations
Answer:
$12
Explanation:
Stand alone sale price = (Cost of chair) * (Discount % of voucher-Normal% of discount) * (% of coupons to be utilized)
Stand alone sale price = $150 * (50%-10%) * 20%
Stand alone sale price = $150 * 40% * 20%
Stand alone sale price = $12
Therefore, the Stand alone selling price used by Gore Inc. is $12
A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $75,000 if demand is low and $130,000 if demand is high. The net present value for one machine and low demand is $90,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $90,000. A second option is to subcontract; that would have a net present value of $110,000. The third option is to purchase a second machine. This option would have a net present value of $100,000. How many machines should the manager purchase initially
Answer:
BUY TWO MACHINES
Explanation:
Calculation for how many machines should the manager purchase initially
BUY ONE MACHINE =(High demand 0.7*100,000)+(Low demand 0.3*90,000)
BUY ONE MACHINE =70,000+27,000
BUY ONE MACHINE=97,000
Note :High demand 100,000 is the Average of Do nothing ,Tomorrow Sub-contract and Buy second machine
High demand=90,000+110,000+100,000
High demand=300,000/3
High demand=100,000
BUY TWO MACHINES
High demand =(0.7 x 130000)
High demand= 91,000
Low demand= (0.3 x 75000)
Low demand=22,500
Hence,
BUY TWO MACHINES= (91,000 + 22,500)
BUY TWO MACHINES=113,500
Based on the above calculation we can see that
the expected payoff from BUY ONE MACHINE is 97,000 while that of BUY TWO MACHINES is 113,500 which means that BUY TWO MACHINES is higher hence, the manager should BUY TWO MACHINES today.
What was the impact of "subprime" mortgages on the economy?
A.They increased defaults and caused large losses at financial institutions.
B.They initially reduced profits and sales of lenders.
C. They reduced interest rates.
Answer:
A.They increased defaults and caused large losses at financial institutions.
Explanation:
subprime mortgages were house loans issued to customer in the early 2000. These housing loan were designed for borrowers with impaired credit history or with no credit history at all. A majority of borrowers who benefited from subprime loans were those with low credit scores would not allow them to get a conventional mortgage.
Everything went well until the 2006 when house price began to drop. At the same period , there was a rise in interest rates in the market. Due to a decline in house price, borrowers could not use their home equity to finance other interests payments and other bills.
Soon, their homes were worth much less than their mortgage balances. They could not sell the house or get refinancing operation using home's equity. the high interest rates were making matters worse. Customers would soon start defaulting. In time, customers realized their homes were less than what they paid for. The customers went to financial institutions demanding a refund for insurance money. The decline in house prices and demand for insurance caused a financial crises brought the US.
Assume the following information for a company with only two products: Product A Product B Total Sales $ 600,000 $ 400,000 $ 1,000,000 Variable expenses $ 200,000 $ 100,000 $ 300,000 If the break-even sales point is $580,000, then what is the total amount of fixed expenses
Answer: $406,000
Explanation:
The following can be deduced from the question:
Total sales = $1,000,000
Variable cost = $300,000
Contribution = Sales - Variable cost
= $1,000,000 - $300,000
= $700,000
Contribution ratio = $7000,00/$1,000,000 × 100 = 70%
Fixed cost = $580,000 × 70%
= $580,000 × 0.7
= $406,000
Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you think that the present value of your car is $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept
Answer:
$3,123.13
Explanation:
we must first determine the price of our car in 1 year = $9,000 x (1 + 10%) = $9,900
this will be the present value of the ordinary annuity (4 equal annual payments)
$9,900 = annual payment x PV annuity factor
PV annuity factor, 10%, 4 periods = 3.1699
annual payment = $9,900 / 3.1699 = $3,123.13
According to the above equation, the minimum annual payment that would need to accept is $3,123.13.
What is the minimum annual payment?
Given Information:
Present value=$9,000Interest rate=10%Firstly, determine the price of our car in 1 year = $9,000 x (1 + 10%) = $9,900
Moreover, this will be the present value of the ordinary annuity (4 equal annual payments)
$9,900 = annual payment x PV annuity factor
PV annuity factor, 10%, 4 periods = 3.1699
Annual payment = $9,900 / 3.1699 = $3,123.13
Learn more about Annual payment, refer to the link:
https://brainly.com/question/15877515
Service variability means that ________. Group of answer choices services cannot be stored for later sale or use service quality depends on when, where, and how they are provided services cannot be seen, tasted, felt, heard, or smelled before they are bought services can be separated from their providers the evaluation of services is subjective and changes from customer to customer
Answer:
✓Services cannot be stored for later sale or use.
✓service quality depends on when, where, and how they are provided
Explanation:
Service variability can be explained as changes that occurs in quality of the same service as a result of the service coming from different vendors. This variation in change is as a result of nature of service, the time that is been
provided, as well as method bof delivery.I t should be noted that Service variability means that services cannot be stored for later sale or use and service quality depends on when, where, and how they are provided
Use the following accounts and information to prepare, in good form, a multiple step income statement, retained earnings statement, and classified balance sheet for Mitchell Enterprises for the year ended December 31, 2019. The company has 37,000 shares of its $5 par value common stock issued and outstanding all during the year. Mitchell Enterprises Adjusted Trial Balance December 31, 2019
Answer:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
Explanation:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
On June 1 of the current year, Tab converted a machine from personal use to rental property. At the time of the conversion, the machine was worth $80,000. Five years ago, Tab purchased the machine for $120,000. The machine is still encumbered by a $50,000 mortgage. What is the basis of the machine for cost recovery
Answer: $80,000
Explanation:
Based on the scenario and the information given in the question, to calculate the basis of the machine for cost recovery, we have to choose the the one which is lower of the cost of the machine or the FMV when it was being converted.
In this case, the basis of the machine for cost recovery is $80,000
Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Sheffield Corp. Balance Sheet December 31, 2022 Cash and cash equivalents $71500 Accounts payable $127500 Accounts receivable 93500 Salaries and wages payable 10000 Inventory 146000 Bonds payable 177500 Prepaid insurance 83000 Total liabilities $315000 Stock Investments 176000 Land 191500 Buildings $226500 Common stock $216500 Less: Accumulated depreciation (52500) 174000 Retained earnings 516000 Trademarks 112000 Total stockholders' equity $732500 Total assets $1047500 Total liabilities and stockholders' equity $1047500
Answer:
The total dollar amount of assets to be classified as property, plant, and equipment is $365,500.
Explanation:
In accounting, property, plant, and equipment are simply the fixed assets of an organization.
From the question, only Land and Buildings can be classified as property, plant, and equipment and their total dollar amount can be calculated based on the information from the question as follows:
Land = $191500
Buildings = $226500
Accumulated depreciation on Buildings = $52500
Buildings net book value = Buildings - Accumulated depreciation on Buildings = $226500 - $52500 = $174000
Therefore, we have:
Total dollar amount of property, plant, and equipment = Land + Buildings net book value = $191500 + $174000 = $365,500
Therefore, the total dollar amount of assets to be classified as property, plant, and equipment is $365,500.
Question 4 of 10
Charging a lower price per unit for purchases of more units is called a
A. seasonal discount
B. quantity discount
C. sale price
D. stocking allowance
Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of a. the human-capital view of education. b. the signaling view of education. c. both the human-capital and the signaling view of education. d. neither the human-capital nor the signaling view of education.
Answer:
If this effort had no effect on the wages of its workers, one might consider this as evidence in support of:
d. neither the human-capital nor the signaling view of education.
Explanation:
The human capital view of education argues that education increases workers' productivity, which also affects some increase in workers' wages. The signaling view states that education passes a message about workers' various innate abilities to potential employers. This implies that the focus of the signaling view or theory is not the effect of education on the students but the message communicated in the labor market.
Additional short-term borrowings $44,000
Purchase of short-term stock investments 11,100
Cash dividends paid $35,600
Interest paid 17,800
Required:
Compute cash flows from financing activities using the above company information.
Answer: $8,400
Explanation:
Financing cashflow relates to transactions concerning debt and equity as these are the capital vehicles for a company. Dividends concern Equity and so are included as a Cash outflow. Interest however, is classified an operating activity.
Cashflow from financing activities;
= Additional short-term borrowings - Cash dividends paid
= 44,000 - 35,600
= $8,400
Gunk Co. reported an asset retirement obligation on its 2019 financial statements. The present value of the liability for the asset retirement obligation at the end of 2019 was $393. The company's discount rate is 8%. What is the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation
Answer:
$31.44
Explanation:
The accretion expense each year will be calculated as = Present value of the Asset retirement obligation at the end of the previous year * Discount Rate
Hence, the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation
= $393 * 8%
= $31.44
Suppose you are holding a long position in a French franc futures contract that matures in 76 days. The agreed upon price is $0.15 for FF 250,000. At the close of trading today, the futures price has risen to $0.155. Under marking to market, you now a. hold a futures contract that has risen in value by $1,250 b. hold a futures contract that has fallen in value by $625 c. will receive $1,250 and a new futures contract priced at $0.155 d. must pay over $1,250 to the seller of the futures contract
Answer: c. will receive $1,250 and a new futures contract priced at $0.155.
Explanation:
Based on the information given in the question, Under marking to market, since we've been informed that the future price has increased from $0.150 to $0.155, then a profit of $125 will be made.
= $0.005 x 250,000
= $1,250,
Since the futures price has risen to $0.155, under marking to market, you now will receive $1,250 and a new futures contract priced at $0.155
If an agent has, within the scope of the agency relationship, committed both negligent and intentional acts resulting in injury to third parties, the principal: Group of answer choices may effectively limit his or her liability to those third parties if the agent has signed a disclaimer absolving the principal from liability. may be liable for both the negligent and intentional acts. will be liable under the doctrine of respondeat superior only for the intentional acts of the agent. will never be liable unless he or she actively participated in the acts.
Answer:
may be liable for both the negligent and intentional acts.
Explanation:
In the case when an agent is within the scope of agent relationship that committed both type of acts i.e. negligent and intentional that results the injury to the third party so here the principal may be liable for both the act i.e. negligent and intentional as it is followed by the doctrine of respodeat superior
Therefore the second option is correct
Information for the Deuce Manufacturing Company follows. Compute the cost of goods manufactured for this company. Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000
Answer:
cost of goods manufactured= $440,300
Explanation:
First, we need to determine the direct material used in production:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 53,200 + 210,000 - 58,100
Direct material used= $205,100
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 78,400 + 205,100 + 149,800 + 105,000 - 98,000
cost of goods manufactured= $440,300
Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold a green card. However, he realized a gain on the sale of Extel Corporation stock, a corporation organized in the United States. The United States does NOT have an income tax treaty with Saudi Arabia. What is the Source of Income and how does the U.S. tax the income
Answer:
The source of income is the capital gain realized when Harry sold the stocks of Extel Corporation. Generally, nonresident aliens (like Harry) are subject to a 30% tax on all their US income sources. E.g. if Harry made a capital gain of $1,000 when he sold the stocks, he will need to pay $300 to the IRS.
Some exemptions apply to foreign students, resident aliens or people that work for foreign governments, but Harry doesn't fit in any of these categories.
A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 71 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of .16. Each container holds 41 pieces and it takes an average of 50 minutes to complete a cycle. a-1. How many containers should be used
Answer:
the number of containers that should be used is 1.67 containers
Explanation:
The computation of the number of containers that should be used is as follows;
= Annual demand × time × (1 + inefficiency factor) ÷ holding pieces
= 71 × 0.83 × (1 + 0.16) ÷ 41
= 1.67 containers
Here The time is converted from minutes to hour i.e
= 50 minutes ÷ 60 minutes
= 0.83
Hence, the number of containers that should be used is 1.67 containers
Oozyil623 Corporation's third quarter budgeted sales and production numbers are below: July August September Sales in units 46,500 58,500 ? Production in units 47,050 58,800 63,150 (ID#68805) Oozyil623 has 5,300 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 78,000 units. Q) What are the budgeted sales for September (in units)?
Answer:
the budgeted sales for September is 61,500 units
Explanation:
The computation of the budgeted sales for the month of September is as follows:
let us assume sales for september be x
Now as we know that
Units produced in September= Ending Inventory + Units Sold - Beginning inventory
63,150 = [78,000 × 0.10] + x - [ x × 0.10]
63,150 = 7,800 + x - 0.10 x
55,350 = 0.9x
x = 61,500
Hence, the budgeted sales for September is 61,500 units
Larry is a minor, age 16 years old.
Larry decides to purchase a cell phone from Sprint.
Larry signs a written contract with Sprint to buy the cell phone and pay $75.00 per month for the cell phone plan for a time period of 2 years.
Sprint agrees that Larry will pay $75.00 per month for 2 years for the cell phone plan.
Larry and Sprint sign a written contract on April 1, 2021. Larry makes his first payment of $75.00 on April 15, 2021.
The written contract states that Larry will pay $75.00 per month for the cell phone plan on the 15th day of each month for 2 years.
WHAT IS ENTIRELY TRUE:
The contract is considered a VOID contract when it was signed by Larry and Sprint because Larry is a minor and Sprint cannot enforce the contract against Larry because Larry entered into the contract when he was a minor.
The contract is a VALID contract but is also a VOIDABLE contract on the part of Larry AND on the part of Sprint.
The contract is NOT voidable because the contract was signed in writing by both Larry and Sprint, pursuant to the Statute of Frauds.
The contract is a VALID contract but is also a VOIDABLE contract on the part of Larry but NOT on the part of Sprint.
Answer:
What is entirely true about this contract is:
The contract is a VALID contract but is also a VOIDABLE contract on the part of Larry but NOT on the part of Sprint.
Explanation:
As a minor, Larry (he was under the age of 18 when he signed the contract with Sprint) lacks the contractual capacity to enter into the contractual relationship with Sprint. But since he has signed the contract in exchange for the purchase of the cell phone, Larry can either honor the deal or void the contract. This is why the contract is said to be valid but voidable at Larry's behest. However, after Larry has turned 18, if he has not done anything to void the contract, then the contract with Sprint can no longer be voided.
A well-known fashion brand in Pakistan recently faced a scandal. The owner's husband got arrested for allegedly sending their employee away upon diagnosis of Corona virus. The Police claimed the designer and her husband should have notified the authorities and admitted the sick employee to a hospital. However, the couple claimed their duty was to just send the employee away after guiding him. The husband got released the very next day for which they thanked Prime Minister.
Answer:
ok
Explanation:
is this real ?? when did this happen ?
Company A offers a discount on an extended warranty on its cell phone when the warranty is purchased at the time the cell phone is purchased. The warranty normally has a price of $150, but Company A offers it for $120 when purchased along with a cell phone. Company A anticipates a 75% chance that a customer will purchase the extended warranty along with the cell phone . Assume Company A sells 1,000 cell phone with the extended warranty discount offer. What is the total stand-alone selling price that Company A would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 cell phone contracts
Answer: [tex]= 22500[/tex]
Explanation:
given data:
original price = $150.
offer price = $120.
chance the customer would purchase the extended warranty = 75%.
no of unit sold = 1000.
solution:
total stand alone price to be used by the company.
[tex]= original price - offer price * unit sold * extended warranty.[/tex]
[tex]= $150 - $120* 1000*0.75[/tex]
[tex]= 30*1000*0.75[/tex]
[tex]= 22500[/tex]
