Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 months. The price of the specialized bike is $700. When sold separately, a maintenance contract is $200 and a comparable but non-specialized bike is $600. If Neakanie sold 3 bikes on December 1, how much total revenue would the company recognize on December 31?

A. $2,937.50.
B. $2,250.00.
C. $250.00.
D. $1,618.75.


Answer: D

Business

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