Answer to Question #157911 in Economics for Barbie

Question

8. Cream Soda bottles are sold for cash at R12 per bottle. If the customer returns the bottle, he/she receives a R1.20 refund. The seller must include R10.80 in gross income for every bottle sold. 

A. True 

B. False 

 

Answer 1

If the customer returns the bottle and receives a R1.20 refund, then the seller must include R12 in gross income for every bottle sold, because R1.20 refund is a part of cost paid for future not to pay for producing one more bottle.

So, the statement is false.