Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium?
Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed.
Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000
Premiums distributed to customers - 500 umbrellas
How much of the total transaction price is allocated to the premium?
aanswer: 220,859
What is the amount of additional sales recognized by Laxada upon redemption of premiums?
answer: 147,239
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