Philbrick Company signed a three-year contract to develop custom sales training materials and pro- vide training to the employees of Elliot Company. The contract price is $1,500 per employee, and the number of employees to be trained is 400. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. Number of employees Development and training costs incurred Year 1 125 $ 91,000 Year 2 200 112,000 Year 3 75 42,000 Total 400 $245,000

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to two decimal places.

2. the cost incurred as a measure of the value provided to the customer. Note: For your Revenue answers, use an unrounded percentage completed factor. and then round your final answer to two decimal places.