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Colin Creevey Inc. offers a discount on an extended warranty on its cameras when the warranty is purchased at the time a camera is purchased.
Colin Creevey Inc. offers a discount on an extended warranty on its cameras when the warranty is purchased at the time a camera is purchased. The warranty normally has a price of $185, but Collin Creevey offers it for $130 when purchased along with an camera. Collin Creevey Inc. anticipates a 55% chance that a customer will purchase the extended warranty along with a camera. What is the stand-alone selling price that Collin Creevey would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations? Stand-alone selling price
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