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Reiju's platoon manufactures tools. Its most popular product is called the Chip Chap, which has a retail price of $ 1 , 2 0 0
Reiju's platoon manufactures tools. Its most popular product is called the Chip Chap, which has a retail price of $ and costs $ to manufacture. It sells the Chip Chap on a standalone basis directly to businesses. Reiju's also provides installation services for commercial customers. Reiju's also distributes the Chip Chap through a consignment agreement with Big retail stores such as Menards. Income data for the first quarter of from operations other than the Chip Chap are as follows....
Revenues: $
Expenses: $
Reiju's has the following information related to two Chip Chap revenue arrangements during the first quarter of
Reiju's sells Chip Chaps to businesses for a total contract price of $ In addition, Reiju's provides installation at a cost of $ each On a standalone basis, the fair value of this service is $ per unit installed. The contract payment also incudes a $ per month service plan for years after installation Reijus cost to provide this service is $ per month The Chip Chaps are delivered and installed on March and full payment is made by Reiju's. Any discount is applied to the productinstallation bundle.
Reiju's ships Chip Chap's to Menards on consignment. By March Menards has sold two thirds of the consigned merchandise at the listed price of $ per unit. Menards notifies Reiju's of the sales, retains a commission, and remits the cash due to Reiju's.
QUESTION: What is Reiju's firstquarter net income? Ignoring taxes.
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