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How much revenue can be recognised by Hawa Ltd

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Question - Hawa Ltd develops and sells a new product. The retail price of a standard package of the product is $1,099. To promote this new product, each purchase comes with a 'free' upgrade that contains a special feature of the product, for a period of 6 months from the date of purchase. This special feature can be purchased separately for $199. Ignoring any tax effect, how much revenue can be recognised by Hawa Ltd for each product sold with the free upgrade (rounded to the nearest dollar)?

Reference no: EM133064593

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