Question
ClubFit is a health club that offers members various gym services. In July 2021, ClubFit started offering a deal whereby enrolling in a new membership
ClubFit is a health club that offers members various gym services. In July 2021, ClubFit started offering a deal whereby enrolling in a new membership for $700 provides one year of unlimited access to facilities, one year of unlimited access to yoga classes, and a yoga mat. The yoga mat comes with a limited 30-day warranty. A one-year facilities membership normally sells for $550 and the yoga mat is available for purchase at the gym for $50, but one-year unlimited access to yoga classes is not a service normally provided. Similar health clubs offer unlimited yoga classes for $450. ClubFit estimates it incurs costs of $320 to provide the yoga classes. A normal profit margin is 25% above cost.
For each item below, indicate if the item qualifies as a separate performance obligation:
Unlimited Access to Facilities YesNo
Unlimited Access to Yoga Classes YesNo
Yoga Mat YesNo
Yoga Mat Limited Warranty YesNo
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