Company A enters into a contract with Company B on March 1, and end on Nov. 31. Company A will exchange 100 clothes at discount as well as 100 glasses. The regular wholesale price of clothes is $85, and cost to produce the glasses is $10. All goods company A sells has profit margin of 60%. Company B agrees to pay $9000 in marketing over the life of contract. company A recognizes $9000 when contract is signed. Fifty Clothes and glass will be delievered at March 1, 25 on June 1, 25 in August 1. 

1) Calculate transaction price of contract? 

2) Wholesale price of glasses and discount Company B got on clothes? 

3) Allocation of transaction price?

Answer rating: 100% (QA)

Company A has entered into contract for which it has received 9000 as contract price Under cont... View the full answer