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Orange Inc. offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased. The

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Orange Inc. offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased. The warranty normally has a price of $170, but Orange offers it for $130 when purchased along with an oPhone. Orange anticipates a 80% chance that a customer will purchase the extended warranty along with the ophone. Assume Orange sells to 1,000 Phones with the extended warranty discount offer. What is the total stand-alone selling price that Orange would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1000 oPhone contracts? Multiple Choice $32,000 $130,000 $40,000 $32,000 () $130,000 O $40,000 $0

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