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On July 15, 20X1, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient- weighing system for a price of $90,000. The
On July 15, 20X1, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient- weighing system for a price of $90,000. The system included finely tuned scales that fit into EverFresh's automated assembly line, Ortiz's proprietary software which allowed the scales to function in EverFresh's automated system, and a one-year contract to calibrate (clean and adjust) the weighing system on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems.) If these goods and services were provided separately, Ortiz estimates it would charge $60,000 for the scales, $10,000 for the software, and $30,000 for the calibration contract. Ortiz delivered and installed the scales and software on August 1, 20X1, and the calibration service commenced on that date. How many performance obligations are contained in this contract? Explain your answer; be specific and complete
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