These jeans are made in Mexico, assembled in the US and retail for $150, but the profit differs considerably depending on whether they're sold online or at a physical store. OFFLINE
Cost of goods sold
$45
Cost of goods sold
$45
Store payroll 27.00
Freight to retail store 4.50
Rent 22.50
Marketing 15.00
Other retail costs 12.00

Profit
$24.00
16%

ONLINE
Cost of goods sold 45.00
Free standard
shipping & returns 10.00

Warehouse/fulfilment 5.00

Operating costs
(softwaremaintenance) 30.00

Marketing
15.00

Profit
$45.00
30%

1. Excluding the cost of goods sold, what is the largest expense for a business selling jeans
offline and online?

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone