Question
Fine Wine , Inc sells a package for wine lovers consisting of a refrigerated cellar, rare wine, and on-site installation by Fine Wine Staff. The
Fine Wine , Inc sells a package for wine lovers consisting of a refrigerated cellar, rare wine, and on-site installation by Fine Wine Staff. The installation includes making sure the rare wine remains at an optimal temperature to enhance the value of the wine. Fine Wine concludes that the refrigerated cellar, rare wine, and installation service are separate performance obligations. Fine Wine sells the refrigerated cellar separately for $5000 sells the rare wine separately for $2000 and offers the installation services seperately for $1000. The entire package sells for $7000.
If the package is sold, how much revenue would be allocated to the rare wine?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started