The Oriole 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 Oriole'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 Oriole management offers a special: buy both a backpack and a jacket for just $99! Managers hope this hot deal will be attractive to students, particularly since the company's high-end backpack sells for $100 all by itself. (a) Your answer is partially correct. For internal decision-making purposes, how much sales will The Oriole record for each product if it uses the stand-alone method to recognize this bundled sale? (Round answers to 2 decimal ploces, eg. 15.25.) New revenue recognized by each $ Backpack 63.46 Jacket 35.54 Totals 99

The Oriole 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 Oriole'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 Oriole management offers a special: buy both a backpack and a jacket for just $99! Managers hope this hot deal will be attractive to students, particularly since the company's high-end backpack sells for $100 all by itself. (a) Your answer is partially correct. For internal decision-making purposes, how much sales will The Oriole record for each product if it uses the stand-alone method to recognize this bundled sale? (Round answers to 2 decimal ploces, eg. 15.25.) New revenue recognized by each $ Backpack 63.46 Jacket 35.54 Totals 99

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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