ANSWER ALREADY GIVEN. JUST PROVIDE SOLUTION Shoppe Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 each. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium? Answer: 220,859 What is the amount of additional sales recognized by Shoppe upon redemption of premiums? Answer: 147,239
ANSWER ALREADY GIVEN. JUST PROVIDE SOLUTION Shoppe Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 each. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium? Answer: 220,859 What is the amount of additional sales recognized by Shoppe upon redemption of premiums? Answer: 147,239
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...
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ANSWER ALREADY GIVEN. JUST PROVIDE SOLUTION
Shoppe Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 each. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed.
Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000
Premiums distributed to customers - 500 umbrellas
How much of the total transaction price is allocated to the premium?
Answer: 220,859
What is the amount of additional sales recognized by Shoppe upon redemption of premiums?
Answer: 147,239
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