Differential Analysis : Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business. To Explain: The circumstances reasonable to purchase from the supplier.

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The Nash Co. knows that students want new backpack and jacket styles before school begins each year. The company is up to the challenge, as its designers and manufacturers work around the clock to create the trendiest looks in both of these product categories. The Nash's top-selling backpack normally brings in a whopping $84 in sales to the business, while its up-and-coming windbreaker jacket sells for a more affordable $56. The company is trying to really push these products, as it earns very high margins on them. In order to capture the hearts and minds of the back-to-school crowd, The Nash management offers a special: buy both a backpack and a jacket for just $104! Managers hope this hot deal will be attractive to students, particularly since the company's high-end backpack sells for $105 all by itself.

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Chapter 24, Problem 5DQ

To determine

Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.

To Explain: The circumstances reasonable to purchase from the supplier.

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The Nash Co. knows that students want new backpack and jacket styles before school begins each year. The company is up to the challenge, as its designers and manufacturers work around the clock to create the trendiest looks in both of these product categories. The Nash's top-selling backpack normally brings in a whopping $84 in sales to the business, while its up-and-coming windbreaker jacket sells for a more affordable $56. The company is trying to really push these products, as it earns very high margins on them. In order to capture the hearts and minds of the back-to-school crowd, The Nash management offers a special: buy both a backpack and a jacket for just $104! Managers hope this hot deal will be attractive to students, particularly since the company's high-end backpack sells for $105 all by itself.

Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider this case: Green Moose Industries buys most of its raw materials from a single supplier. This supplier sells to Green Moose on terms of 1/10, net 30. The cost per period of the trade credit extended to Green Moose is ________(1.23%, 0.89%, 1.01%, 1.05%) (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.). Green Moose’s trade credit has a nominal annual cost of _______ (22.85%, 19.17%, 16.59%, 18.43%) , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) If Green Moose Industries’s supplier shortens its discount period to five days, this will _______ (Increase, Decrease) the cost of the trade credit.

How much of the transaction price would the company allocate to its performance obligation to provide the needed services to the customer?provide in good accounting form