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Mazyrski
1 month ago
11

A company that usually sells satellite TV equipment for $50 and two years of satellite TV service for $450 has a special, time-l

imited offer in which it sells the equipment for $300 and gives the two years of satellite service for free. If the company sells one of these packages on July 1, how much revenue should the company recognize on July 1 when it delivers the equipment and receives the full price in cash?
Business
1 answer:
Scilla [3.2K]1 month ago
6 0

Answer:

The amount to be recognized on July 1st is $ 50

Explanation:

1. First, let us analyze the information provided to respond accurately:

Standard price for satellite TV equipment is $50

Standard price for 2 years of satellite TV service stands at $450

A limited-time offer includes equipment and two years of satellite service for $300

Date of sale: July 1st

2. What revenue should the company acknowledge on July 1 when it delivers the equipment and receives full payment?

Utilizing this formula leads us to the answer:

Non-delivered services = Time-limited offer - Standard price of satellite TV equipment

Non-delivered services = 300 - 50 = 250

Revenue recognized = Time-limited offer - Non-delivered services for 2 years

Revenue recognized = 300 - 250

Revenue recognized = $ 50

This is the figure to acknowledge on July 1st, reflecting the standard price of satellite TV equipment. The remaining $ 250 represents deferred revenue, which will be recognized monthly.

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Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to
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A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $16
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Answer:

Incremental profit = $30000

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Explanation:

provided data

Variable costs = $75

Fixed costs = 30

Sales price = $165

to determine

incremental profit or loss  from approval

solution

The contribution per unit is calculated as follows:

Contribution per unit = $165 - $75

Contribution per unit = $90

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Loss on contribution = $270000

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