1. Toyota evaluates production for a model with expected sales revenue $10,000,000, direct materials $2,000,000, direct labor $1,500,000, variable overhead $800,000, fixed costs $5,000,000.
   • Requirements:
     • Apply the revenue recognition principle to determine when Toyota should recognize revenue from vehicle sales.
     • Calculate throughput contribution and evaluate its impact on profitability.
     • Discuss how revenue recognition affects throughput accounting decisions.
     • Recommend actions to maximize throughput and overall profitability, considering revenue recognition practices.
     • Analyze the ethical implications of revenue recognition methods in throughput accounting.