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6. An electric bike manufacturer has a special. They will sell you their best e-bike, a high end security device, and an extended service plan
6. An electric bike manufacturer has a special. They will sell you their best e-bike, a high end security device, and an extended service plan for your bike for $2,400. They currently offer the bike for $1,200, the security device for $400, and their service plan for $1600. The competition offers a similar service plan for $2,400. These are lucrative contracts, since on average it entails only $600 of labor, and the manufacturer usually has a 50% margin. Based on this data and what you know about the different ways to price separate performance obligations in a basket purchase, which of the following is NOT a possible amount to record as the transaction price for the service plan? a $800 b. $864 c. $1040 d. $1200 e. $1440
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