On november 1, year 1, an entity sold 50 machines to a customer for $100 each. the cost of each machine is $20. the entity allows customers to return any unused machine within 6 months and receive a full refund. the entity uses the expected value method to estimate the variable consideration. based on the entity’s experience and other relevant factors, it reasonably estimates that 10 machines (6 in year 1 and 4 in year 2) will be returned. what amount of revenue is recognized by the entity from the sale of these machines on november 1, year 1?

You are a team of marketing consultants. it is 2008 and the great recession has struck. one of your clients is whole foods market (sometimes known as whole paycheck). wfm has come to you and asked for strategic advice on how to adapt their product and pricing strategies in light of the economic downturn: 1. advise wfm on the various approaches that could be taken to reducing price. be sure to consider potential psychological impact of price reductions on wfm consumers. 2. based on the options outlined in part 1, recommend an approach and support with marketing theory.