Baccio Candy Company is a subscription-based retailer of fine chocolates and sweets. Customers pay $180 per year and, in return, they receive a treat basket at the beginning of every month. Customers who sign up by the 15th of the current month will be entitled to receive their basket at the beginning of the next month. Customers who sign up on the 16th or thereafter will have to wait until the month following the next month to receive their basket. (So, if a customer signs up on February 17th, they will not receive their basket until the first week of April). Customers can only cancel at the end of their annual subscription period.
Baccio acquired the following subscription contracts at the beginning of the year 2016:
Date Number of customers
January 5 20 customers
January 18 13 customers
February 8 25 customers
February 14 10 customers
February 27 5 customers
March 3 18 customers
March 10 7 customers
March 19 5 customers
March 28 11 customers
Required:
Assume that Baccio prepares their financials on a quarterly basis. How much revenue will they report on their income statement for the period ended March 31st, 2016?