Answer:
Colson's Total revenue in 2014=$700,000
Explanation:
This can be expressed as;
Colson's total revenue in 2014=Initial amount paid+First installment paid on November 15, 2014
where;
Initial amount paid=40% of Contract price
Contract price=Cost per unit×Number of units=(5×200,000)=1,000,000
Initial amount paid=(40/100)×1,000,000=$400,000
First Installments paid=(Contract price-Initial amount paid)/2
(1,000,000-400,000)/2=300,000
Replacing in the expression above;
Colson's Total revenue in 2014=(400,000+300,000)=$700,000
