Question
TPO, an IP telephony company, offers various combinations of handsets and usage plans to its customers under two-year non-cancelable contracts. It offers two handset models:
TPO, an IP telephony company, offers various combinations of handsets and usage plans to its customers under two-year non-cancelable contracts. It offers two handset models: a basic model that it offers free of charge (stand-alone selling price is $150); and the most recent model, which offers additional features and functionalities and for which TPO charges $300 (stand-alone selling price is $600). The entity also offers two usage plans: a 500-minute plan and an 1000- minute plan. The 500-minute plan sells for $50 per month, and the 1000-minute plan sells for $70 per month (which also corresponds to the stand-alone selling price for each plan). Assignment: Create a table showing the various revenue recognition possibilities. There are at least four combinations.
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