Question
Bi-Tech Industries sells cell phones combined with mobile phone service in a package to its customers. The company is planning to sell a new product,
Bi-Tech Industries sells cell phones combined with mobile phone service in a package to its customers. The company is planning to sell a new product, one never sold by the company in the past. It is a portable phone charger which allows customers to charge their phones when they do not have access to an electrical outlet. The company will sell the three products in a package for a single price of $1,050. The package includes the phone, charger and one year of mobile service. The phone is sold separately for $475 and the one year of mobile service is priced separately at $550. How much revenue is allocated to each of the three performance obligation in the package?
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