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Hans Cars & Trucks sells various types of used vehicles with a one-year warranty that covers any defects. When cuatomers make a pirchase, they also
Hans Cars & Trucks sells various types of used vehicles with a one-year warranty that covers any defects. When cuatomers make a pirchase, they also recieve a coupon for 10 free engine oil changes and an option to change all of the tires for $50 after 30,000 miles. Typically, customers pay $25 for an oil change and $250 for a new set of tires.
a. Given the information above, how many performance obligations exist in the contract to purchase a vehicle and please name them individually.
b. Assume the same contract but that it offers customers an option to change all of the tires for $250 after 30,000. How many perfomance obligations exist in the contract to purchase a vehicle?
Thank you!
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