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Shamrock Company sells goods to Bridgeport Company during 2020. It offers Bridgeport the following rebates based on total sales to Bridgeport. If total sales to Bridgeport are 9,500 units, it will grant a rebate of 3%. If it sells up to 21,100 units, it will grant a rebate of 4%. If it sells up to 27,000 units, it will grant a rebate of 7%. In the first quarter of the year, Shamrock sells 10,700 units to Bridgeport at a sales price of $107,000. Shamrock, based on past experience, has sold over 40,300 units to Bridgeport, and these sales normally take place in the third quarter of the year.
Problem 1: What amount of revenue should Shamrock report for the sale of the 10,700 units in the first quarter of the year.
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