6. Rattler, Inc., an exempt organization, trains disabled individuals to design web pages. Rather than hold a traditional graduation exercise, the graduates compete in a web design contest. Such activities are held four times each year. An admission fee of $10 is charged to the general public to attend the contest. Eight hundred people attended the contest this year, and prizes of $2,000 were given to the top 3 graduates. Calculate the amount of Rattler’s unrelated business income from this activity.
| Computation of Unrelated business income | ||
| Revenue ($10 x 800) | $8,000 | |
| Less: Cost of prizes distributed ($2000 x 4) | $8,000 | |
| Unrelated business income | $0 | |
| As the activities are held 4 times in a year and $2000 prizes are given to the | ||
| top 3 graduates, total of $8000 ($2000 x 4 times) are awarded to the top 12 | ||
| graduates in the year. | ||
6. Rattler, Inc., an exempt organization, trains disabled individuals to design web pages. Rather than hold...
SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...