Question
BestBought Inc. offers a discount on a headset when the headset is purchased at the time the uTV is purchased. The headset normally has a
BestBought Inc. offers a discount on a headset when the headset is purchased at the time the uTV is purchased. The headset normally has a price of $200, but BestBought offers it for $150 when purchased along with an uTV. BestBought anticipates a 75% chance that a customer will purchase the headset along with the uTV. Assume BestBought sells 1,000 uTVs with the headset discount offer. What is the total stand-alone selling price that BestBought would use for the headset discount option for purposes of allocating revenue among the performance obligations in those 1,000 uTV contracts?
A. $0.
B. $37,500.
C. $50,000.
D. $150,000.
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