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Teal Mountain Stores started a customer loyalty program at the beginning of 2023 in which customers making cash purchases of gasoline at Teal Mountain Gas
Teal Mountain Stores started a customer loyalty program at the beginning of 2023 in which customers making cash purchases of gasoline at Teal Mountain Gas Bars are issued rewards in the form of grocery coupons. For each litre of gasoline purchased, the customer gets a grocery coupon for 3.00 cents that can be redeemed in Teal Mountain Food Stores. The coupons have no expiry date. Teal Mountain Stores began selling gift cards in 2024 that do not have expiry dates. The following are selected transactions in 2023 and 2024: 1. In 2023, the Gas Bars sold 3.40 million litres of gasoline resulting in gas sales of $4,080,000. Grocery coupons were issued with these sales. The expected redemption rate for the grocery coupons is 69%. 2. In 2023, customers redeemed $54,400 of the grocery coupons in the Food Stores. 3. In 2024 , the Gas Bars sold 5.25 million litres of gasoline resulting in gas sales of $6,825,000. Grocery coupons were issued with these sales. The expected redemption rate for the grocery coupons is 78%. 4. In 2024, customers redeemed $58,500 of the grocery coupons in the Food Stores. 5. In 2024 , customers purchased $92,000 of gift cards, and $50,000 of the revenue from gift card sales was to be recorded by the end of the year. Indicate if the following activities will increase, decrease, or have no effect on each of revenues, expenses, and profit: 1. Issuing grocery coupons when sales are made 2. Redeeming grocery coupons 3. Issuing gift cards 4. Redeeming gift cards eTextbook and Media
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