The correct answer is $126,375.
If the term is four months long and Davis institute receives $168,500 in tuition for the four months then they receive $42.125 per month. You can calculate this by dividing $168,500 by 4, which equals $42,125. Three of the months are in the first fiscal year, so 3 months worth of revenue will be allocated to that year. $42,125 x 3 = $126,375.
