Aria Perfume, Inc., sold 3,820 boxes of white musk soap during January of 2016 at the price of $120 per box. The company offers a full refund for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 2% of sales will be returned. A) How many performance obligations are in the contract? B) How much January Revenue?
Aria Perfume, Inc., sold 3,820 boxes of white musk soap during January of 2016 at the price of $120 per box. The company offers a full refund for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 2% of sales will be returned. A) How many performance obligations are in the contract? B) How much January Revenue?
Chapter7: Budgeting
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Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Transcribed Image Text:Aria Perfume, Inc., sold 3,820 boxes of white musk
soap during January of 2016 at the price of $120
per box. The company offers a full refund for any
product returned within 30 days from the date of
purchase. Based on historical experience, Aria
expects that 2% of sales will be returned.
A) How many performance obligations are in the
contract?
B) How much January Revenue?
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