Cheeptravel

question 34

Multiple Choice

Cheeptravel.com sells flights for various airlines and destinations over the internet and receives a 25 percent commission for tickets sold. Cheeptravel collects the full amount from the customer and remits the net amount after commission to the airline. Unsold tickets are returned to the airline after 90 days. During 20X6, Cheeptravel had the following information: 1. Total sales price of tickets sold during 20X6 was $2,000,000. 2. Total commissions retained by Cheeptravel during 20X6 for these tick ets was $500,000. 3. Total expenses incurred for web site maintenance for Cheeptravel was $1,000 per month. How much revenue should Cheeptravel report on its 20X6 income statement?

• A) $500,000
• B) $2,000,000
• C) $1,500,000
• D) $488,000

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Definitions:

Door-In-The-Face Technique

A persuasion strategy involving first making a large, unreasonable request that is likely to be refused, followed by a smaller, more reasonable request.

Aging Rock Entertainers

Refers to musicians within the rock genre who are advancing in age yet continue to perform and influence the music industry.

Contribution

An act of giving something, such as effort, assistance, or resources, to aid a cause or achieve a common goal.

Peripheral Route

In the context of persuasion, a method where people are influenced by incidental cues, such as a speaker's attractiveness or message length, rather than argument quality.