filling with 127‚500‚000 of Wellbutrin XL tablet. d. The revenue of each Wellbutrin XL tablet Wholesaler cost = $2.83 x = $2.096 Distributor cost = $2.096= $0.4192 e. Total revenue per truck 127‚500‚000 x $0.4192 = $ 53‚448‚000 One truck can carry $10million worth of Wellbutrin XL tablet product. Q2: How should the company recognize revenue based upon the two possible FOB structures mentioned in the case? In order to recognize revenue‚ there are four conditions must be met as according to GAAP
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A family recently reached a settlement for injuries caused by a 2007 tractor trailer accident after seeking representation from a personal injury law firm in Texas. A family of three‚ injured in a Texas 18 wheeler truck accident near Chappel Hill‚ in Washington County‚ recently received a settlement of $435‚000 after being represented by The Carlson Law Firm (Cause No 2011-CI-00049). The suit was filed in the 150th Judicial District Court of Bexar County‚ Texas. According to the Texas personal injury
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Biovail Corporation Issues : 1) The company has the problem with their recognition of the profit Whether they should realize or not the revenue for the third quarter. 2) Issues on the concepts of revenue recognition that have been apply in the company to show their financial results. Whether Biovail Corporation recognize its revenue using FOB shipping point or FOB destination. Suggested Solution 1) FOB Destination shipping term The truck accident had no impact on company’s third quarter
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Biovail Case‚ Question 1 1. How many truckloads of product are actually required to carry $10 million of product? Show your calculations. Given: a. 1 Wellbutrin XL tablet is estimated to be 1.5 cm3 (this includes the packing space) b. A 18-wheeler trailer dimensions are: 17m x 4.5m x 2.5m Since the tablet and the trailer are using different units of measurements we need to convert the trailer dimensions to centimeters before we can calculate the volumes. To convert meters into centimeters
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Table of Contents 1.0 Abstract Biovail Corporation‚ a large pharmaceutical company and had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. It is recently had its stock downgraded by a well-known pharmaceutical analyst and a number of other analysts were also scrutinizing the company. The outcome was not favorable‚ as Biovail ’s acquisition methods were labeled as unethical and their accounting practices were questioned
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When you work as an independent truck driver contracted to a company‚ then you should remember that when you are involved in a truck accident‚ the costs are on you. They include the lawyer fees and insurance fees. When you have a good truck accident lawyer behind you‚ then you can enjoy the same kind of benefits as you would with insurance coverage. There are so many reasons why you should consider having a truck accident lawyer when the need arises and some of the reasons are highlighted below.
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Wellbutrin XL tablets fit into a trailer 1.5x=191‚250‚000 X=127‚500‚000 d. How much revenue does Biovail get from a single pill ? 400% 35% $2.83 Biovail → Distributor → Wholesaler → Retailer 0.52 ← 2.10 / 400% ← 2.83/1.35%=2.10 127‚500‚000 x 0.52= $6‚630‚000 One truck can definately carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Since Biovail’s
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Biovail Case Part 1: Assumptions: 1. The mark-up is from the Distributor to the Wholesaler‚ and the margin is from the Wholesaler to the Retailer Biovail Distributor purchase price Wholesaler purchase price = Distributor purchase price + 400% mark-up Retailer price = Wholesaler price + 35% margin 2. We don’t know the excess space needed in the truck for the 64 gallon drums so we assumed that the 1.00 cm3 accounts for the excess space
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Contents 1.0 INTRODUCTION Biovail Corporation was one of the Canada’s largest pharmaceutical publicly traded companies which expert in the development and large scale of manufacturing of pharmaceutical products. Biovail Company engaged activities on enhance formulate of the existing drugs‚ clinical testing‚ manufacture and commercial pharmaceutical products and utilized advanced drug delivery technologies. In the case‚ on September 30‚ 2003 there was a truck carrying a shipment of Wellbutrin®
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Executive Summary Biovail Corporation‚ a major Canadian pharmaceutical company listed on the New York Stock Exchange‚ announces that it will miss its quarterly earnings target by $25 to $45 million‚ blaming $10 to $15 million of the shortfall on a truck accident involving a shipment that left its facility on the last day of the quarter. The case was ultimately prosecuted by the U.S. Securities and Exchange Commission (SEC). The case is centered on the question of revenue recognition and how the
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