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A wireless provider sells a handset for $100. The handset costs $50 to manufacture and includes a $20 mail-in rebate. The providers internal reports add
A wireless provider sells a handset for $100. The handset costs $50 to manufacture and includes a $20 mail-in rebate. The providers internal reports add this rebate to the cost of goods sol Calculate the margin %.
Accounting standards mandate, however, that external reports deduct rebates from sales revenue. Under this construction, the companys margin calculations run differently and yield a different percentage margin. Calculate this revised margin %.
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