As of December 31,2020, AP Corp. had installed and delivered the equipment, but only 3,500 units of merchandise were delivered. What is the revenue from initial franchise fees and its total revenue?

On January 1, 2020, AP Corp. granted a franchise to Mr. X with an initial franchise fee of P5,000,000. The terms of the payment were P750,000 was considered as down payment and the balance was shouldered by a non- interest-bearing note payable in five equal annual installments starting at the end of the year, December 31, 2020. The prevailing rate for similar note was 10%. (PV factor of 5 periods is 3.79079). By December 31, 2020, the franchise generated gross sales amounted to P2,500,000. The franchise agreement will expire on December 31, 2024. As part of the franchise agreement, the following were also agreed upon: a. AP Corp. will allow Mr. X to use its trade name until the expiration of the contract and will have a stand- alone selling price of P500,000. b. AP Corp. will install and deliver the store equipment and will have a stand-alone selling price of P300,000. AP Corp. will deliver 10,000 units of merchandise and will have a stand-alone selling price of P200,000. d. Continuing fee of 15% based on sales. C