Question
Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial program along with a one-year subscription to the on-line LearnIt
Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial program along with a one-year subscription to the on-line LearnIt Office Hours virtual classroom. LearnIt-Plus retails for $200. When sold separately, the LearnIt math tutorial sells for $150, and access to the LearnIt Office Hours sells for $100 per year. How much revenue will be recognized upon delivery of the LearnIt software?
How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?
If Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $100 per year. How much revenue will be recognized upon delivery of the LearnIt software?
How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
