Question: Assume that Amazon com sells the MacBook Pro a computer brand

Assume that sells the MacBook Pro, a computer brand produced by Apple. Amazon arranges its operations such that customers receive products from Apple Stores rather than Amazon. Customers purchase from Amazon using credit cards, and Amazon forwards cash to Apple less a fixed commission that Amazon keeps above the normal wholesale MacBook Pro price. In this arrangement, is Amazon a principal or an agent? Why? Given that answer, would Amazon recognize revenue for the entire sales price of the MacBook Pro or only the amount of the commission received in exchange for arranging sales for Apple Stores?

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  • CreatedDecember 23, 2013
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