Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreementto provide incentives to customers. The Winery division offers coupons good for meals at the restaurants and theRestaurant division offers coupons good for wine tastings and purchases. Annual profits are $21 million. The two divisionsmeet the requirements for segment disclosures.Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows.RevenueCostsProfitWinery$37,500RevenuesCostsProfitRestaurant$18,750After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows.WineryRestaurant???$13,100$9,700?The value of the coupons issued by the Restaurant Division was double the value of the coupons Issued by the WineryDivision.Required:What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your answers inwhole dollars not in thousands of dollars.)Value of coupons issued by Winery DivisionValue of coupons issued by Restaurant Division

Profit is very important because the entity cannot survive without profit in the long run. The…

Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide incentives to customers. The Winery division offers coupons good for meals at the restaurants and the Restaurant division offers coupons good for wine tastings and purchases. Annual profits are $21 million. The two divisions meet the requirements for segment disclosures. Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows. Restaurant $18,750 Revenue Costs Profit Winery $37,500 After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows. Winery ? Restaurant ? ? $13,100 $9,700 ? Revenues Costs Profit The value of the coupons issued by the Restaurant Division was double the value of the coupons issued by the Winery Division. Required: What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your answers in whole dollars not in thousands of dollars)

Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide incentives to customers. The Winery division offers coupons good for meals at the restaurants and the Restaurant division offers coupons good for wine tastings and purchases. Annual profits are $21 million. The two divisions meet the requirements for segment disclosures. Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows. Restaurant $18,750 Revenue Costs Profit Winery $37,500 After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows. Winery ? Restaurant ? ? $13,100 $9,700 ? Revenues Costs Profit The value of the coupons issued by the Restaurant Division was double the value of the coupons issued by the Winery Division. Required: What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your answers in whole dollars not in thousands of dollars)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter24: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3CMA

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