Itay sells a mobile that makes sounds that supposedly soothe babies and result in better sleep. He used to sell the mobile for $100 (it is a really nice one), but now offers two options. Option one is still the mobile for $100. Option two is the mobile for $120 with a promise that your baby will sleep better within 30 days or your money back. He has been doing this for six months and out of the 742 mobiles, only 1 has been returned. This week he sold 5 $100 mobiles and 3 $120 mobiles in his store. All were paid for with either cash or credit card. 

How much revenue should he recognize for this week?

Answer rating: 100% (QA)

To calculate the revenue to be recognized for this week we need to consider the sales of both option... View the full answer