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O'Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with
O'Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,470. Similar club-fitting services are offered by other vendors for $80, and O'Hara generally charges approximately 5% more than do other vendors for similar services. Estimate the stand-alone selling price of the club-fitting services using the adjusted market assessment approach. Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $44,000 and earn an additional $9,000 if Highgate achieves $90,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $90,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Aria Perfume, Inc., sold 2,550 boxes of white musk soap during January of 2021 at the price of $60 per box. The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 4% of sales will be returned. How many performance obligations are there in each sale of a box of soap? How much revenue should Aria recognize in January
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