THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 38

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A company wishes to evaluate the effectiveness of a marketing campaign.Seventy five percent of all potential professors were reached in a focused advertising program.Twenty eight percent of those contacted adopted the book while 8% of the adoptions came from professors who did not receive the promotional material.Define the following events of interest:
A₁ = Professor received advertising material
A₂ = Professor did not receive advertising material
B₁ = Professor adopts the book
B₂ = Professor does not adopt the book
-What is the probability that a professor does not adopt the book?

Understand the installment method of revenue recognition and its impact on deferred and realized gross profit.

Familiarize with recent developments in revenue recognition standards and their implications on accounting practices.

Understand how to compute the contribution margin ratio and its significance in assessing a product's profitability.

Calculate the contribution margin per unit and per composite unit and recognize its role in break-even analysis.