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Company A proposes a customer loyalty plan, and customers can get reward points for purchasing product A for $100. This reward point can be redeemed for product B for free, or purchase product C, product B and merchant C at a discounted price of $30 The normal stand-alone selling prices of the products are $20 and $50 respectively. Company A estimates that 60% of customers would choose to redeem B for free Commodity, 40% of customers will choose to purchase Commodity C at a discounted price of $30, then the transaction price should be shared among the rewards What is the amount of incentive points? (A)$10.71 (B)$16,67 (C)$19.35 (D)$24.24

Company A proposes a customer loyalty plan, and customers can get reward points for purchasing product A for $100. This reward point can be redeemed for product B for free, or purchase product C, product B and merchant C at a discounted price of $30 The normal stand-alone selling prices of the products are $20 and $50 respectively. Company A estimates that 60% of customers would choose to redeem B for free Commodity, 40% of customers will choose to purchase Commodity C at a discounted price of $30, then the transaction price should be shared among the rewards What is the amount of incentive points? (A)$10.71 (B)$16,67 (C)$19.35 (D)$24.24

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Company A proposes a customer loyalty plan, and customers can get reward points for purchasing product A for $100. This reward point can be redeemed for product B for free, or purchase product C, product B and merchant C at a discounted price of $30 The normal stand-alone selling prices of the products are $20 and $50 respectively. Company A estimates that 60% of customers would choose to redeem B for free Commodity, 40% of customers will choose to purchase Commodity C at a discounted price of $30, then the transaction price should be shared among the rewards What is the amount of incentive points? (A)$10.71 (B)$16,67 (C)$19.35 (D)$24.24
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