Question

Everest Copy Enterprises offers a premium copy package (PCP) to potential customers. In the PCP, customers receive a copy machine plus three years of repair service for a total of cost of $2,700. When sold separately, a copy machine costs $1,800 and one year of repair service costs $400. On October 1, 2021, Everest sells a PCP to Romney, Inc. Installation occurs the same day with repair service effective immediately.

How much revenue should Everest record for the fiscal year ended December 31, 2021 as a result of this PCP sale?

Answer 1