A company is offering a rebate with a face value of $100. They expect the rebate to
Fantastic news! We've Found the answer you've been seeking!
Question:
A company is offering a rebate with a face value of $100. They expect the rebate to increase sales by 10,000 units. The marketing expenses are $10,000. Past history shows that 10% of rebates are redeemed. What is the correct procedure for calculating the unit rebate redemption expense?
Take the face value and multiply it by the historical redemption rate.
Multiply the face value by the increased units, then multiply by the historical redemption rate.
Take the marketing expenses divided by the increased units sold.
Take the marketing expenses and divide it by the increased unit sales
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date: