Question
Martin MFG CO (MFG) specializes in selling and maintaining portable pools. On January 1, 2018, MFG sold a premium pool package that includes pool salt,
Martin MFG CO (MFG) specializes in selling and maintaining portable pools. On January 1, 2018, MFG sold a premium pool package that includes pool salt, floats, and complete maintenance service for $10000. If sold separately, the pool would have a price of $8000, the salt would have a price of $100, the floats would have a price of $600, and the maintaince would have a price of $5000. The pool was delivered Jan 1, 2018, the salt on February 15, 2018, the float on March 22, 2018 and maintaince was performed evenly throughout all of 2018, 2019, and 2020 starting on Jan 1, 2018.
Select all statements related to the case above
If stand alone price for salt were lower than $100 on Jan 1 2018 the total revenue recognizer would increase
If stand alone price for salt were lower than $100 on Jan 1 2018 the total revenue recognizer would decrease
If MFG wanted increased revenue in 2018, stand alone price of floats lower than $600
If MFG wanted increased revenue in 2019, stand alone price of floats lower than $600
If MFG wanted increased revenue in 2020, stand alone price of floats lower than $600
If MFG wanted to increase revenue in 2018, would deliver the floats at same time as salts on Feb 15, 2018
If MFG wanted increase revenue in 2019, would deliver the floats on Jan 1, 2019
If MFG increases price of total contract from $10,000 to $11,000 , revenue over whole contract would not change
If MFG increases price of total contract from $10,000 to $11,000 , revenue in 2020 would decrease
If MFG wanted to decrease revenue in 2020, MFG would delay starting maintenance contract until 1/1/2019
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