Abusiness will usually choose to produce a new product inan existing facility if the cost is less that the cost of building a new one and the . type of technology needed for the new product is the same as the technology used for the existing productsb. new product is an extension of an existing product line already produced in the factoryc. human resources requirement for the new product and existing products can be satisfied with the facility's current employeesd. product design is already completede. existing factory has enough capacity to handle demande for the new product as well as the existing products

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?