Plan A. The company would begin selling access to a premium version of its website....
50.1K
Verified Solution
Link Copied!
Question
Accounting
Plan A.
The company would begin selling access to a premium version of its website. The new online customers would use their credit cards. The company has the capability of selling the premium service with no additional investment in hardware or software. Annual credit sales are expected to increase by $275,000.
Costs associated with Plan A: Additional wages related to these new sales are $145,500; credit card fees will be 5.0% of sales; and additional record keeping costs will be 6% of sales. Premium service sales will reduce advertising revenue by $2,550 annually because some customers will now only use the premium service.
Plan B.
The company would begin selling merchandise. It would make additional annual credit sales of $525,000.
Costs associated with Plan B: Cost of these new sales is $369,000. Record keeping and shipping costs will be 4.0% of sales; and uncollectible accounts will be 6.5% of sales.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.