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CaHeK987 [17]
2 years ago
9

Berry Farm produces organic tomatoes and strawberries. In June 2021, it transported 130 boxes of strawberries with a price of $1

5 per box to the Bay Farmers' Market. Berry Farm paid an upfront fee of $100 to present its products at the market for one week, and the market earns a 25% profit margin on each item sold, but Berry Farm is responsible for any items that remain unsold at the end of the week. Required: The market was able to sell 85 boxes of strawberries to customers. How much revenue should Berry Farm recognize with respect to this transaction?
Mathematics
1 answer:
disa [49]2 years ago
6 0

Answer:

the  revenue recognized is $1,275

Step-by-step explanation:

The computation of the revenue recognized is shown below:

= Number of boxes of strawberries sold to customers × price per box

= 85 boxes × $15

= $1,275

Hence, the  revenue recognized is $1,275

We simply applied the above formula and the same should be considered

Also

= 130 - 85

= 45 boxes would not be recognized as sale is not made

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