Question
Amazon operates an internet site from which it will sell Dora's products from Dora's online store. Customers place their orders for the product by making
Amazon operates an internet site from which it will sell Dora's products from Dora's online store. Customers place their orders for the product by making a product selection directly from the internet site and providing a credit card number for the payment. Amazon receives the order and authorization from the credit card company and passes the order to Dora. Dora reviews the order, and then instructs Amazon to ship Dora's product from Amazon's warehouse directly to the customer. Amazon does not take title to the product stored in Amazon's warehouse and has no risk of loss or other responsibility for the product. Dora pays Amazon handling fees for warehousing and shipping. Dora is also responsible for all product returns, defects, and disputed credit card charges. The product is typically sold for $175. Amazon receives $50 from Dora for each order which covers the handling fee.
Determine Amazon's sales revenue from each order:
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