Mr. Tom purchased 3 x GPS Cat Collar from Firestorm.com store. The total item value of his order is $146.85 and the shipping charge is $4.95 (Shipping charges are only refundable when customer cancels the full order). Total order value $151.80. After the purchase, Mr. Tom had a change of mind and informed you via email support portal that now he only wants 1-piece GPS Cat Collar. According to Firestorm Store’s Refunds & Returns policy, to cancel an item customer will be charged 25% of its canceled item value as a cancellation fee. How much cancellation fee will Mr. Tom pay and what will be the new order value? How much money will be refunded to Mr. Tom’s account?
Mr. Tom purchased 3 x GPS Cat Collar from Firestorm.com store. The total item value of his order is $146.85 and the shipping charge is $4.95 (Shipping charges are only refundable when customer cancels the full order). Total order value $151.80. After the purchase, Mr. Tom had a change of mind and informed you via email support portal that now he only wants 1-piece GPS Cat Collar. According to Firestorm Store’s Refunds & Returns policy, to cancel an item customer will be charged 25% of its canceled item value as a cancellation fee. How much cancellation fee will Mr. Tom pay and what will be the new order value? How much money will be refunded to Mr. Tom’s account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Tom purchased 3 x GPS Cat Collar from Firestorm.com store. The total item value of his order is $146.85 and the shipping charge is $4.95 (Shipping charges are only refundable when customer cancels the full order). Total order value $151.80. After the purchase, Mr. Tom had a change of mind and informed you via email support portal that now he only wants 1-piece GPS Cat Collar. According to Firestorm Store’s Refunds & Returns policy, to cancel an item customer will be charged 25% of its canceled item value as a cancellation fee. How much cancellation fee will Mr. Tom pay and what will be the new order value? How much money will be refunded to Mr. Tom’s account?
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