Your audit firm has a new client in the cable television, Operation Management

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Your audit firm has a new client in the cable television

Your audit firm has a new client in the cable television industry. The audit partner, Dan, asked you to find out whether the client can recognize revenue (under currently effective revenue guidance) immediately for hookup services provided to new customers. Assume that the client's hookup revenues generally approximate $75 per customer, and related direct selling costs generally amount to approximately $10 per customer. Draft an email to Dan, responding to the question.

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