Question
Company A operates an internet site from which it will sell Company T's products. Customers place their orders for the product by making a product
Company A operates an internet site from which it will sell Company T's products. 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. Company A receives the order and authorization from the credit card company, and passes the order on to Company T. Company T ships the product directly to the customer. Company A does not take title to the product and has no risk of loss or other responsibility for the product. Company T is responsible for all product returns, defects, and disputed credit card charges. The product is typically sold for $175 of which Company A receives $25. In the event a credit card transaction is rejected, Company A loses its margin on the sale (i.e., the $25). What is the revenue of Company A from the sale of each product? What is the revenue of Company T from the sale of each product? Group of answer choices
$25 and $150
$150 and $175
$150 and $25
$25 and $175
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