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Analyze revenue recognition principles and their impact on cost analysis. Product Units Sold Selling Price ($) Variable Cost per Unit ($) Fixed Costs ($) Product
Analyze revenue recognition principles and their impact on cost analysis.
Product | Units Sold | Selling Price ($) | Variable Cost per Unit ($) | Fixed Costs ($) |
Product A | 10,000 | $100 | $60 | $200,000 |
Product B | 5,000 | $150 | $80 | $150,000 |
Requirements:
Apply the revenue recognition principle to determine when revenue should be recognized for each product.
Calculate the contribution margin and contribution margin ratio for each product.
Analyze how different revenue recognition methods (e.g., point of sale, completion) impact cost analysis and profitability.
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