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To calculate the expected Prorate Multiplier and resulting Net Total for both Quote Lines for Universal Containers' Subscription Products, we need to understand the pricing configuration and how the prorated pricing is calculated.
Product A Calculation:
Subscription Term: 36 months
List Unit Price: $36,000
Since the product has a 36-month term and the pricing is prorated, we need to find the prorate multiplier for the specified term.
Product B Calculation:
Subscription Term: 1 month
List Unit Price: $2,000
Quantity: 15
Quote Subscription Term: 18 months
We need to calculate the prorated price for the 18-month term.
Let's calculate the Prorate Multiplier and resulting Net Total for each product:
Product A:
Prorate Multiplier = Subscription Term of Quote / Subscription Term of Product
Net Total = List Unit Price × Prorate Multiplier
Product B:
Prorate Multiplier = Subscription Term of Quote / Subscription Term of Product
Net Total = (List Unit Price × Quantity) × Prorate Multiplier
Now, let's perform the actual calculations for both products.
Based on the calculations, the results for the Prorate Multiplier and resulting Net Total for both Quote Lines are:
Product A:
Prorate Multiplier = 0.5
Net Total = $18,000
Product B:
Prorate Multiplier = 18
Net Total = $540,000
Comparing these results to the provided options, it appears that none of the given choices exactly match the calculated results. However, the closest match, considering a potential misunderstanding or misprint in the Net Total for Product A, is Option B:
Product A Prorate Multiplier = 0.5
Product A Net Total = $270,000 (However, the calculated value is $18,000)
Product B Prorate Multiplier = 18
Product B Net Total = $540,000...
Answer is B
Domenico is right. It is B
The correct answer should be the B, because the Product B Net total= 2000*15*18=540000