Composite Provides Extended Service Contracts on Electronic Equipment Sold Through

question 150

Multiple Choice

Composite provides extended service contracts on electronic equipment sold through major retailers. The standard contract is for four years. During the current year, Composite provided 42,000 such warranty contracts at an average price of $81 each. Related to these contracts, the company spent $400,000 servicing the contracts during the current year and expects to spend $2,100,000 more in the future. What is the net profit that the company will recognize in the current year related to these contracts?

• A) $902,000.
• B) $3,002,000.
• C) $400,000.
• D) $450,500.

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Definitions:

Nurse's Response

The actions or interventions undertaken by a nurse in reaction to a patient's needs or a medical situation.

Communication Process

The transfer of information from a sender to a receiver through a medium, involving encoding, sending, receiving, and decoding of messages.

Misinterpret Message

Incorrectly understanding or comprehending the intended meaning of a communicated message.

Health Care Professional

Individuals qualified through education and training to provide health care services, such as doctors, nurses, and therapists.