Pamela in bamplona makes bull-repellent scent according to a traditional spanish recipe, which normally sells at €9 (euros) per unit. normal production volume is 10,000 ounces per month. average cost is €5 per ounce, of which €2 is direct material and €1 is variable conversion cost. this product is seasonal. after july, demand for this product drops to 6,000 ounces monthly. in november, umberto offers to buy 1,500 ounces for €6,000. assume that the order is received in july, peak season. if pamela accepts the order, she will turn away regular customers who order 500 ounces. pamela should

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?