1. Boeing evaluates a new aircraft model with a target selling price of $200,000. Estimated costs include direct materials $50,000, direct labor $30,000, variable overhead $20,000, fixed costs $5,000,000.
   • Requirements:
     • Apply the revenue recognition principle to determine when Boeing should recognize revenue from aircraft sales.
     • Calculate the break-even point in units and sales dollars.
     • Perform a sensitivity analysis considering different revenue recognition scenarios.
     • Recommend pricing strategies and cost controls aligned with revenue recognition practices.
     • Discuss the impact of revenue recognition on financial statements and decision-making.