Problem 13-9 | ![http://edugen.wileyplus.com/edugen/art2/common/pixel.gif]()
|
Sycamore Candy Company offers an MP3 download (seven-single medley) as a premium for every 5 candy bar wrappers presented by customers together with $3.10. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.85. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2014 and 2015 are as follows. (All purchases and sales are for cash.) | | | 2014 | | 2015 | MP3 codes purchased | | 315,000 | | 415,800 | Candy bars sold | | 2,959,600 | | 2,776,000 | Wrappers redeemed | | 1,512,000 | | 1,890,000 | 2014 wrappers expected to be redeemed in 2015 | | 365,400 | | | 2015 wrappers expected to be redeemed in 2016 | | | | 441,000 |
Warning
| Premium Liability | | ![http://edugen.wileyplus.com/edugen/art2/common/pixel.gif]()
| Premium Expense | | ![http://edugen.wileyplus.com/edugen/art2/common/pixel.gif]()
|
|