Oriole Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Oriole Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $483. The standalone selling price of the tablet is $263 (the cost to Oriole Tailors is $166 ). Oriole Tailors sells the Internet access service independently for an upfront payment of $274. On January 2, 2025, Oriole Tailors signed 90 contracts, receiving a total of $43,470 in cash. 2. Oriole Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $589. Oriole Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $139. Oriole Tailors signed 180 contracts for Oriole Bundle B on July 1, 2025, receiving a total of $106,020 in cash. In response to competitive pressure for Internet access for Oriole Bundle A, after 2 years of the 3-year contract, Oriole Tailors offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying \$96 (which equals the standalone selling price of the revised Internet service package) extends access for 2 more years of Internet connection. 30 Oriole Bundle A customers sign up for this offer