QM sells a range of mobile phones. A customer can also purchase an extended warranty when purchasing a mobile phone. The extended warranty takes effect after the manufacturer's warranty ends. The combined sales price for a mobile phone plus an extended warranty is 1,500. Separately, a mobile phone can be purchased for 1,200, and an extended warranty can be purchased for 600. How much revenue should QM recognise in its income statement for the sale of one package (mobile phone + extended warranty)?

 

Answer rating: 100% (QA)

To determine the revenue QM should recognize for the sale of one package mobile phone extended ... View the full answer