Here's another accounting question that I need some guidance on. I'm having trouble on knowing how to start the problem, so if you could explain why you know you have to solve it that way, that would be super helpful!

P6-52. Performance Obligation Fulfilled Over Time Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,500 per employee, and the number of employees to be trained is 400 . Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. REQUIRED a. For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using ... 1. the number of employees trained as a measure of the value provided to the customer. 2. the cost incurred as a measure of the value provided to the customer. b. Assume that Philbrick's costs are $18,750 to develop the custom training materials at the beginning of the contract and then $500 for each employee trained. Which method do you believe is more appropriate in this situation? Explain