Answer:
Philbrick Company
Performance Obligation Fulfilled Over Time
Computation of the revenue, expense, and gross profit:
Year    Number of     Development     Sales            Gross
           Employees    /Training Cost     Value            Profit
2019          150            $
55,000           $165,000      $110,000
2020       250               70,000             275,000      205,000
2021         100               20,000               110,000        90,000
Total       500          $145,000          $550,000   $405,000
Explanation:
a) Data and Calculations:
Contract price = $1,100 per employee
No. of employees to be trained = 500
Total contract value = $550,000 ($1,100 * 500)
Expected Development and Training Costs:
Year    Number of     Development
           Employees    /Training Cost
2019          150                $
55,000
2020       250                    70,000
2021         100                    20,000
Total       500               $145,000