1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
professor190 [17]
2 years ago
9

General Product Inc. distributed 150 million coupons in 2021. The coupons are redeemable for 40 cents each. General anticipates

that 70% of the coupons will be redeemed. The coupons expire on December 31, 2022. There were 45 million coupons redeemed in 2021 and 31 million redeemed in 2022. General recognizes coupon expense in the period coupons are issued. What was General's coupon liability as of December 31, 2021
Business
1 answer:
Rasek [7]2 years ago
5 0

General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.

<h3>What is coupon liability?</h3>

Coupon liability is a contingent liability arising from coupon redemption obligations.

As a potential future liability, only the amount that can be reasonably estimated should be recognized.

<h3>Data and Calculations:</h3>

Distributed coupons = 150 million

Coupon redemption cost per unit = 40 cents

Total potential liability from coupons = $60 million (150 million x $0.40)

Probability of occurrence = 70%

Estimated redeemable liability = $42 million ($60 million x 70%)

Redeemed coupons in 2021 = 45 million or $18 million (45 million x $0.40)

Recognized contingent liability for 2021 = $24 million ($42 - $18 million)

Thus, General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.

Learn more about coupon liabilities at brainly.com/question/17963028

#SPJ1

You might be interested in
From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and ex
Tasya [4]

Answer:

B. False

Explanation:

<em>Total Product offer </em>is every aspect of a product which the customer evaluates before buying.

From strategic marketing viewpoint, the customer may evaluate the product on both the tangible and intangible attributes.

An example of this is the iPhone by Apple. On tangible level, the product itself, the packaging and others are tangible attributes that a customer may evaluate. On intangible level, the brand name, perceived benefits, convenience, purchase services, and many other factors are part of the iPhone as the intangible attributes that the customer will evaluate.

As a marketer, one should think and talk in the language of customers- let it be from either tangible or intangible point of view.    

7 0
3 years ago
Suppose that a person's nominal income rises from $10,000 to $12,000 and the consumer price index rises from 100 to 105. The per
Kazeer [188]

Answer:

C) Rise about 15 percent

Explanation:

The computation of the increase or decrease of real income is shown below:

Initial income equals to

= Nominal income ÷ Consumer price index

= $10,000 ÷ 100

= 100

If it increases, then it would be

= Nominal income ÷ Consumer price index

= $12,000 ÷ 105

= 114.28

So, the real income is increased from

= 114.28 - 100

= 14.28 approx i.e 15 percent

8 0
3 years ago
Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several cre
Leviafan [203]
Paying your phone bill late and maxing out your credit card can hurt your credit score. 
7 0
3 years ago
Read 2 more answers
What is drill-down capability?a. Involves the aggregation of information and features simple roll-ups to complex groupings of in
MissTica

Answer:

The answer is C.

Explanation: Drill-down capability refers to the capability necessary to achieve a goal such as a desired level of output. It enables users to get details, and details of details, of information, and it also involves the aggregation of information and features simple roll-ups to information that are complex and interrelated.

What this means is that, Drill down is a capability that takes the person who needs information from a more general view of the data to a view that is more specific and precise. For example, when there is a report that shows sales revenue by state can allow the user to select a specific state, click on it and see sales revenue by county or city within that particular selected state.

6 0
3 years ago
Read 2 more answers
What is one course of action available in every problem solving process
Sonja [21]
Choose to do nothing about the problem is always a course of action.
4 0
3 years ago
Read 2 more answers
Other questions:
  • All the following items are similar to each other except one. Which item is least like the others?
    8·1 answer
  • The manager of the main laboratory facility at Elmhurst HealthElmhurst Health Center is interested in being able to predict the
    10·1 answer
  • How does Apple advertise their Iphone 11 and become successful? It has to be a judgement on how successful they were.
    5·2 answers
  • An economy has a Cobb-Douglas production function:Y=K? (LE) 1-?.The economy has a capital share of a half, a saving rate of 24 p
    7·1 answer
  • A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting surgeons to the locatio
    8·1 answer
  • An insurance company’s procedure for settling a claim under $10,000 for fire or water damage to a home owner is to require two e
    6·1 answer
  • The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info
    12·1 answer
  • PROBLEM 5 You have to design the system interconnection network of a multicomputer system. Your choices are to use an Omega or a
    13·1 answer
  • Seo Yeon is a paid intern working for a small team of four software developers. Each member of the team is facing different dead
    9·1 answer
  • If the sales revenue is $150,000 and the margin of safety is $30,000, then the break-even
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!