BeeBusy8413 BeeBusy8413

03-03-2020
Business

contestada

Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows:

Casino Hotel
Revenues $80,000,000 $ 55,000,000
Costs 45,000,000 40,000,000

The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $12,000,000. The discount coupons redeemed at the hotel totaled $5,000,000. As of the end of the year, all coupons for the current year expired.

Required (please show work) :
What are the operating profits for each division (Casino & hotel) considering the effects of the costs arising from the joint marketing agreement?

Respuesta :

muratkhanmoldir00 muratkhanmoldir00

04-03-2020

Answer:

Explanation:

casino hotel

Revenue $80,000 $55,000

Coupons $12,000 $5,000

Total revenue $92,000.00 $60,000

Less:

Costs $45,000 $40,000

Transfer price $5,000 $12,000

Total costs $50,000 $52,000

Operating profit before tax $42,000 $8,000

Answer Link

Otras preguntas

Each year the density of 7 species of Odonata (dragonflies and damselflies) is monitored in a wetland preserve. If the density of each species is to be compared

Prehensile tails are: a. present in most primates. b. present only in some platyrrhines. c. present in catarrhine primates. d. made strictly of muscle.

HELP ASAPPPP!!!!! this is one of the last few and i don’t know how to do it

Depression in terms of ______ suggests that depressed mood protects the organism by reducing energy expenditure, thereby protecting itself and saving energy for

If the direct quote for a U.S. investor for British pounds is $1.43/£, then the indirect quote for the U.S. investor would be ________ and the direct quote for

Represent the proportional relationship described with an equation where p equals pillows and b equals beds: four pillows for each bed a.p=4b b.4p=b c.p=4/b d.

2. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of dep

On a six-question multiple-choice test there are five possible answers for each question, of which one is correct and four are incorrect. If a student guesses r

Investigating communication in the workplace by observing conversations between two coworkers about their personal lives and determining how that dialogue could

URGENT Why would affirmative action be considered an example of the conflict of free market vs. welfare state? Legal policies encourage fair hiring practices