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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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