Parker products, inc. is a manufacturer whose absorption costing income statement reported sales of $123 million and a net operating loss of $18 million. according to a cvp analysis prepared for management, the company’s break-even point is $115 million in sales. required: assuming that the cvp analysis is correct, is it likely that the company’s inventory level increased, decreased, or remained unchanged during the year?

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone