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6 Orange Incorporated offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased.
Orange Incorporated offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased.
The warranty normally has a price of $ but Orange offers it for $ when purchased along with an oPhone. Orange antic ipates a chance that a customer
will purchase the extended warranty along with the oPhone. Assume Orange sells to oPhones with the extended warranty discount offer. What is the total
standalone selling price that Orange would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations
in those oPhone contracts?
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