Contract Modification

Answer the requirements for each of the following separate cases.

a$.$ On January $1,$ Manufac Co$.$ enters into a contract with a retailer to sell $500$ distinct items of merchandise for $$100,000($ $$200$ per item$)$ over a $12-$month period. On March $31,$ the parties to the

contract agree to a contract modification to add an additional $160$ items for $$220$ each within the original contract period. The $$220$ per unit price for the additional items represents the standalone

selling price of these items on the date of the modification. If $400$ items had already been sold under the original contract, how would revenue be allocated to the remaining $100$ items under the

original contract and the $160$ items per the contract modification?

b$.$ Assume the same information as in part a except that the new items under the contract modification are not sold at the standalone selling price $($the standalone selling price is not $$220$ per unit$).$ If

$400$ items had already been sold under the original contract, how would revenue be allocated to the remaining $100$ items under the original contract and the $160$ items per the contract modification?

Note: Do not round until your final answer; round your final answers to the nearest whole dollar.