SBR syllabus

The Question - Part 2

The contributors to the crowdfunding campaign were promised a reward of 1 Cracken bike for every $4,000 dollars contributed.

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At the financial year end of 31 December 20X9, Burnett Co had manufactured only 50 Cracken bikes at a total cost of $240,000 but none had been delivered to contributors.

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There was some doubt as to the capability of the company to develop, manufacture, and deliver the bikes promised but Burnett Co is sure that the funding will cover any costs incurred.