1. Boeing evaluates CVP for a new aircraft model with limited machine hours: Fixed costs $2,000,000, variable costs $100/unit, selling price $200/unit, machine hours 20,000 hours.
   • 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 considering revenue recognition timelines.
     • Determine the maximum contribution margin with limited machine hours.
     • Prepare a contribution margin analysis report incorporating revenue recognition principles.
     • Recommend strategies to optimize production with constrained resources while adhering to revenue recognition guidelines.