Revenue: % of Completion On March 15, 20x3, Mayer Company entered into a 4 year project for the total price of $9,000,000. You have the following information for the first two years of the service contract: In 20x3, Mayer incurred $1,200,000 of costs and believed it would need to incur an additional $6,300,000 to finish the project. In 20x4, Mayer incurred $2,700,000 of costs and believed it would need to incur an additional $4,100,000 to finish the project. What is the revenue that will be realized on this contract in 20x3 and 20x4?

Revenue: % of Completion On March 15, 20x3, Mayer Company entered into a 4 year project for the total price of $9,000,000. You have the following information for the first two years of the service contract: In 20x3, Mayer incurred $1,200,000 of costs and believed it would need to incur an additional $6,300,000 to finish the project. In 20x4, Mayer incurred $2,700,000 of costs and believed it would need to incur an additional $4,100,000 to finish the project. What is the revenue that will be realized on this contract in 20x3 and 20x4?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 8E: Net present value method for a service company Coast-to-Coast Inc. is considering the purchase of an...

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