Reference no: EM132691902

Swifty Ltd. purchases units of wood frames that have manufacturer's rebates from Blue Spruce Inc. The rebate requires Swifty to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.0 before any rebate. If more than 3,660 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 3,660 units. Swifty Ltd. has a June 30 fiscal year end. By June 30, 2017, Swifty had purchased 3,500 wood frames for the six-month period from January 1, 2017, to June 30, 2017. Swifty estimates that an additional 3,500 wood frames will be purchased from July 1, 2017, to December 31, 2017. Swifty's management is very confident that this estimate will be confirmed by future purchases from Blue Spruce.

Problem 1: Calculate the amount of any rebate that Swifty should accrue at June 30, 2017, assuming the rebate cannot be cancelled by Blue Spruce. (Round answer to 2 decimal places, e.g. 52.75.)