As part of a promotion campaign, funzy cereal includes one coupon in each issue of various national magazines and offers a toy car in exchange for $1.20 and four coupons. the cars cost funzy $1.70 each. experience indicates that 40% of the coupons eventually will be redeemed. during the last month of 2018, the first month of the offer, 13.00 million coupons were distributed and 2.70 million of the coupons were redeemed. what amount should funzy report as a promotional expense for coupons on its december 31, 2018, income statement?
Solved
Show answers
More tips
Answers on questions: Business
- B Business 2. Discuss the CA/T project success so far including: a) The traffic and congestion has not only disappeared, but has been untangled, thanks to the massive road, bridge...
- B Business Cost push is most likely to occur in those industries in which management or labor is so strong that it can dictate prices. true or false...
- B Business 1. by what percent has the u.s. prison population increased in the last three decades...
- B Business The most common economic system in the world is a?...
- B Business Which employer is the best for someone seeking work in animal systems? a. a slaughterhouse b. a zoo c. a dealership d. a mining company...
- B Business As a measure of economic welfare, gross domestic product underestimates a country s production of goods and services when there is an increase in...
- B Business Which project management knowledge area is an overarching function that affects and is affected by the different knowledge areas...
- B Business Sanjay told his staff that the company didn t care if the components came from a company using sweatshop labor, the parts were needed to meet the order and the company...
- B Business What inventory method is designed to eliminate inventory waste by using smaller quantities of materials that arrive just prior to needing them for the transformation...
- B Business Everyone join zoom meetingid 654 926 2923...
Ответ:
$8,892.34
Explanation:
This question is an ordinary annuity type of question. It can be solved using a financial calculator. Input the following to solve for the future value of the annuity deposits;
Recurring payment; PMT = -1,000
Duration of investment; N = 2*4 = 8 quarters
One-time present cashflow; PV = 0
Quarterly interest rate ; I = 12% /4 = 3%
then compute the future value ; CPT FV = $8,892.34