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 maintains 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 maintains 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

Answer rating: 100% (QA)

ANSWER C If MFG wanted increased revenue in 2018 stand alone price of floats lower than 600 In addit... View the full answer