Nuck inc. sells silo storage containers to farmers . The stand - alone selling price of the and does not indude any warranty . A farmer may choose to purchase warranty for a normal selling price of $ 5,000 For the current month Nuck is offering which involves selling a " package " which includes a silo plus free warranty for $ 118,000 . Nuck's cost for one silo is . Using the relative method , how much gross profit should be recognized by Nuck at the date of sale one package