Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide ncentives to customers. The Winery division offers coupons good for meals at the restaurants and the Restaurant division offers coupons good for wine tastings and purchases. Annual profits are $60 million. The two divisions meet the requirements for segment disclosures. Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows. Restaurant $35,000 Revenue Costs Profit Winery $70,000 Revenues Costs Profit ? ? After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows. Winery Restaurant ? ? ? $14,400 $11,000 ? Value of coupons issued by Winery Division Value of coupons issued by Restaurant Division ? The value of the coupons issued by the Restaurant Division was double the value of the coupons issued by the Winery Division. Required: What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your answers in whole dollars not in thousands of dollars.)

Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide ncentives to customers. The Winery division offers coupons good for meals at the restaurants and the Restaurant division offers coupons good for wine tastings and purchases. Annual profits are $60 million. The two divisions meet the requirements for segment disclosures. Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows. Restaurant $35,000 Revenue Costs Profit Winery $70,000 Revenues Costs Profit ? ? After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows. Winery Restaurant ? ? ? $14,400 $11,000 ? Value of coupons issued by Winery Division Value of coupons issued by Restaurant Division ? The value of the coupons issued by the Restaurant Division was double the value of the coupons issued by the Winery Division. Required: What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your answers in whole dollars not in thousands of dollars.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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