Fall Break Inc. (FBI) decided to implement a loyalty program to increae ale of their product. On January 1, 2022 cutomer were awarded one loyalty point for every $25 of good purchaed. Each loyalty point can be redeemed for a $2. 00 dicount on any purchae of FBI good in the next five year. During 2022, cutomer bought good totalling $500,000. Note that thi i the tand-alone elling price of the good. The cot of thee good i $423,000. Baed upon imilar loyalty program that have been implemented by FBI’ competitor, FBI etimate that 75% of the point will be redeemed. FBI i a publicly traded company that follow IFRS. You can aume that all ale were made in December 2022 and no loyalty point were redeemed in 2022
