Hagerstown Tanning & Spa Sold 300 Contracts at $230 Each

Essay

Hagerstown Tanning & Spa sold 300 contracts at $230 each. Each contract permitted the buyer to use a tanning bed 12 times and a whirlpool 16 times. Cost information follows:
In the first year, customers used the tanning bed 2,160 times and the whirlpool 900 times.
Required:
Compute the amount of revenue that should be recognized in the first year.