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A company sells equipment and service contracts.When purchased separately, the equipment costs 9,087, and a 6 year service contract costs 2,497.When purchased together, there is
A company sells equipment and service contracts.When purchased separately, the equipment costs 9,087, and a 6 year service contract costs 2,497.When purchased together, there is a discount of 73 percent on the cost if purchased separately. They always deliver equipment the day it is sold. If the customer buys the service contract separately and pays for it up front, how much deferred revenue does the firm record at the time of the sale?
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