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On September 7th of the current year, WTG signed a contract with New Zork, a large city in the northeast. WTG will provide New Zork
On September 7th of the current year, WTG signed a contract with New Zork, a large city in the northeast. WTG will provide New Zork with 1,475 scooters at a price of $965 each. Each of the scooters is included in a service agreement, whereby WTG will provide all maintenance on the scooters for 3 years. In addition, it will provide labor at no charge for these repairs. At the time of the repair, WTG will bill New Zork for the parts needed to accomplish the repair. New Zork paid WTG on September 7th of the current year. WTG will deliver 485 scooters on October 1 of the current year, 510 scooters on January 1 of next year, and 480 scooters on April 1 of the next year. Because of the size of New Zork, and its potential to buy many more scooters, WTG offers them a volume discount, based on how many scooters they purchase between September 7th of the current year and December 31st of the following year. The discount applies to both the scooters and the maintenance agreements. Any discounts will be retroactive to all of the scooters they have purchased
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