1. A technology company evaluates CVP for a new software: Fixed costs $500,000, variable costs $20/unit, selling price $50/unit, maximum production capacity 30,000 units.
   • Requirements:
     • Apply the revenue recognition principle to determine when revenue should be recognized for software sales.
     • Calculate the break-even point in units and sales dollars considering revenue recognition timelines.
     • Determine the maximum contribution margin with limited production capacity.
     • Prepare a contribution margin analysis report with revenue recognition implications.
     • Recommend strategies to optimize production and pricing decisions while adhering to revenue recognition guidelines.