company that provides corporate health and wellness progr

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company that provides corporate health and wellness

programs. One of her sales people signed a contract at the beginning of

the quarter for a very large client. It was a bundle of services to be

provided over the next year. The contract was for $120,000, with equal

payments at the beginning of each month ($10,000 per month). The new

client is a very high profile and well known company, so Gwen is very

excited.

This is the first bundled contract that the company has sold and the

salesperson felt like it was a great deal. It starts with an intense

bootcamp in the first month for all employees. That will require a lot of

work and Gwen would normally charge $30,000 for the bootcamp. Each

month throughout the contract they will offer an & intensive weekend& ; of

workouts and diet advice. Gwen normally charges $5,000 for each of

these. They also will provide access to their online program, which has

activity and food logs as well as preprogrammed exercise suggestions

and a weekly inspirational email. Gwen would normally charge a

company of this size $15,000 for one year of access to the website.

How much revenue should Gwen recognize at the end of the first quarter

(3 months into the deal)?

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