Niwot Co. sells products and service plans both separately and
bundled together. Willy Loman, a Niwot Co. salesman, sold a
Widgetron in year 5 for $1,000, its normal price, and told the
customer he’d "throw in the 3-year service plan for free," which
the company normally sells for an additional $150. The product
shipped, the customer paid, and $1,000 in revenue was recognized in
year 5. Is this correct? Why or why not?
Multiple Choice
This is correct because the...