The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.
The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.
The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.
The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.
Sales revenue 19,910,000 Awarded Points 50,000,000 points Deferred revenue 90,000 Expected redemption 60% Points to be redeemed 30,000,000 points Cost of goods sold 16,000,000 Inventory 16,000,000 1 point has value = $90000/30000000 = $ 0.003