contestada

baker co. sells consumer products that are packaged in boxes. as a promotion, baker offered an unbreakable glass in exchange for $1 and 2 box tops. the cost of the glass was $2.00. baker estimated at the end of the year that it would be probable that 50% of the box tops will be redeemed before the promotion ends. baker sold 100,000 boxes of the product during the current year and 40,000 box tops were redeemed during the year for the glasses. what amount should baker accrue as an estimated liability at the end of the current year, related to the redemption of box tops?

Respuesta :

$5,000 is the sum Baker accrues as a projected liability for the redemption of box tops after the current year.

sold 100,000 boxes.

0.50 times the estimated redemption rate

50 000 anticipated redemptions

already redeemed 40,000 box toppers

10,000 box tops still need to be redeemed

2/box tops for each redemption

5,000 glasses are anticipated to be delivered.

Per glass price ($2 - $1) $1

Liability estimated at $5,000

What does financial redemption mean?

The repayment of a fixed-income product, such as a Treasury note, certificate of deposit, or bond, on or before its maturity date is referred to as redemption in the world of finance. Investors in mutual funds can ask their fund manager to redeem all or a portion of their shares.

Calculating the redemption rate- The total number of customers who have ever used points may be found here. The total number of consumers who have ever accrued points may be found here. Total consumers who have ever used points is equal to the sum of all customers who have ever earned points.

The best leading indicator of how well-run your loyalty program is is its redemption rate. This is so that you can see how many points your members are actually using.

Learn more about redemption: https://brainly.com/question/15275975

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