Question
In September 2019, Fernetti Corp. commits to selling 200 of its iPhone-compatible docking stations to Remington Co. for $30,000 ($150 per product). The stations are
In September 2019, Fernetti Corp. commits to selling 200 of its iPhone-compatible docking stations to Remington Co. for $30,000 ($150 per product). The stations are delivered to Remington over the next 6 months. After 120 stations are delivered, the contract is modified and Fernetti promises to deliver an additional (beyond the original 200) 120 products for an additional $15,000 ($125 per station). Determine the per unit revenue (sales price) recognized for the first 20 stations sold after the contract modification. Assume that the price for the additional stations reflects the standalone selling price at the time of the contract modification. The additional stations are distinct from the original products as Fernetti regularly sells the products separately.
$125.00 | ||
$137.50 | ||
$150.00 | ||
$135.00 |
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