Accounting Hw. Please help.
Assume F&S offers a deal whereby enrolling in a new membership also entitles the member to receive a voucher redeemable for 25 percent off a year’s worth of premium yoga classes. A new membership costs $800, and a year’s worth of premium yoga costs an additional $600. F&S estimates that approximately 40 percent of the vouchers will be redeemed. F&S offers a 10 percent discount on all courses as part of its seasonal promotion strategy. b. |
What amount of the transaction price would you allocate to the discount voucher on yoga course?
My Solution: 1) 600 * 10% *40% = 24
2) 24 + 800 = 824
(24/824) * 800 = 23.30
But it says answer is wrong. Can someone explain? Thank you. |