Question
To attract more subscribers, A New York City daily newspaper called Manhattan Today offered new subscribers the ability to pay $250 for an annual subscription
To attract more subscribers, A New York City daily newspaper called Manhattan Today offered new subscribers the ability to pay $250 for an annual subscription that also would include a coupon to receive a 30% discount on a one-hour ride through Central Park in a horse-drawn carriage. The annual subscription normally charges a fee of $324. Customers prepay their subscriptions and receive 200 issues over the year. The list price of a carriage ride is $300 per hour. The company estimates that approximately 40% of the coupons will be redeemed. How much revenues or deferred revenues per subscription should be allocated to the newspaper subscription?
a.$240.
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b.$235.
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c.$230.
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d.$225. |
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