company that provides corporate health and wellness  programs

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)?