Assume that Amazon.com sells the MacBook Pro, a computer produced by Apple, for a retail price of $1,500.

Assume that Amazon.com sells the MacBook Pro, a computer produced by Apple, for a retail price of $1,500. Amazon arranges its operations such that customers receive products directly from Apple Stores rather than Amazon. Customers purchase from Amazon using credit cards, and Amazon forwards cash to Apple equal to the retail price minus a $150 commission that Amazon keeps. In this arrangement, how much revenue will Amazon recognize for the sale of one MacBook Pro?

Expert Solution

Amazon should recognize revenue of $150 as entry on sale would be

Customer Dr	1,500.00
To Accounts Payable (Apple)		1,350.00
To Commission Income or Revenue		150.00

Principal or agent:

The “A”.com recognized revenue is $150. In this case, “A”.com acts as an agent, because it does not have primary responsibility in delivering of goods or service. The only risk is to hold the goods and services. Hence, “A”.com revenue amount is equal to commission it receives.

Amazon should recognize revenue of $150 as entry on sale would be:

Junaid answered 2 years ago

1) London Drugs is selling the new macbook pro for a selling price of $1015.93 with...

1) London Drugs is selling the new macbook pro for a selling price of $1015.93 with markdowns of 40% and 20%. Future shop is selling the same macbook pro for a selling price of $1839.94 with a markdown of 25%. What additional discount should you ask for from the more expensive shop 2) A clothing store purchases a shirt for $16.17 and applies a markup of 23% of their desired selling price. For what amount should the store list the...

Big Apple Sporting Goods is a retail store that sells a variety of sports equipment. The...

Big Apple Sporting Goods is a retail store that sells a variety of sports equipment. The company's fiscal year ends on December 31. Information to be used for the operating budget this coming year follows. Sales and Merchandise Purchases Budget Information • Sales for this coming year ending December 31 are expected to be as follows: First quarter: $600,000 Second quarter: $650,000 Third quarter: $660,000 Fourth quarter: $800,000 • Cost of goods sold is 40 percent of sales (this is...

UIT is a computer retail store that sells two kinds of microcomputers: desktops and laptops. The...

UIT is a computer retail store that sells two kinds of microcomputers: desktops and laptops. The company earns $220 profit on each desktop computer it sells and $500 profit on each laptop. The microcomputers UIT sells are from its wholesaler. This wholesaler can only supply UIT up to 350 desktops and 295 laptops next month. The employees at UIT must spend 30 minutes installing software and checking each desktop computer they sell. The employees spend 50 minutes to complete this...

Assume the demand for Apple iphones is very elastic. If Appleraises the price on iPhones...

Assume the demand for Apple iphones is very elastic. If Apple raises the price on iPhones from $900 to $1,100, will the total revenue increase or decrease for Apple? Explain why.

PC-Express is a computer retail store that sells desktops and laptops. The company earns $600 on...

PC-Express is a computer retail store that sells desktops and laptops. The company earns $600 on each desktop computer it sells and $900 on each laptop. The computers PCExpress sells are actually manufactured by another company. This manufacturer has a special order to fill for another customer and cannot ship more than 80 desktops and 75 laptops to PC-Express next month. The employees at PC-Express must spend about 2 hours installing software and checking each desktop computer the company sells....

Acme Computer Co. sells computers to retail stores for $400. If Acme requires the retailers to...

Acme Computer Co. sells computers to retail stores for $400. If Acme requires the retailers to charge customers $500 for the computers, then it is engaging in a. monopolistic competition. b. tying. c. predatory pricing. d. resale price maintenance.

Assume that is produced only two products; Coffee bean and plastic where are the price and quantity produced are:

Assume that is produced only two products; Coffee bean and plastic where are the price and quantity produced are:Year Coffee beanPlastic2018 (base year)P= 10 Q= 1,000P= 5 Q= 2,0002019P= 10 Q= 1,100P= 5 Q= 2,1002020P= 12 Q= 900P= 6 Q= 1,900 Calculate GDP deflator for the years 2018, 2019 and 2020. Also, calculate the Nominal and real GDP growth on 2019 & 2020, compare between them by explaining why they are different. Calculate...

PERFORMANCE EVALUATION - Economics Computer Company assembles personal computers and sells them in the retail marketplace....

PERFORMANCE EVALUATION - Economics Computer Company assembles personal computers and sells them in the retail marketplace. The company is organized into two profit centers: the assembly division and the distribution division. The demand curve facing the company (and the distribution division) is P = 3,500 – 10Q. The marginal cost for assembly (which includes purchasing the parts) is constant at $450. The distribution division faces constant marginal distribution costs of $50 per unit. A. What is the profit-maximizing retail price...

A company sells a product for a retail price of $100. It offers quantity discounts based...

A company sells a product for a retail price of $100. It offers quantity discounts based on the table below Quantity Discount 10-19 10% 20-49 20% 50-99 30% 100 or more 40% Write a program that asks user for enter the quantity of product they want to purchase. It should then display the discount amount (if any) and the total purchase amount after the discount. The output should be displayed with 2 decimal points as shown below. See a sample...

Assume the production of a good involves four stages of production. If the final retail price...

Assume the production of a good involves four stages of production. If the final retail price of this good is $20, it must be the case that summing the "value added" for all stages of production will equal:

Question