Part (b)

A franchise of automotive technicians has a contract arrangement for a rewards program with a car manufacturing company called BMC. For every $5.00 of services performed by an automotive technician at anyone of the franchise locations, the customer is awarded Car Dollars. The Car Dollars can be redeemed towards the purchase of a motor vehicle manufactured by BMC. In total the automotive technicians performed $23,000,000 worth of services in 2020. BMC have estimated the stand-alone selling price of $0.45 and for each Car Dollar awarded, the automotive technicians will pay $0.40 to the BMC for each Car Dollar awarded to its customers. *(a) Your answer is correct. Determine how the $23,000,000 transaction price would be allocated to the two performance obligations (the automotive services and the Car Dollars earned by the customers). (Round percentage of total selling price calculations to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 125.) Automotive Services $121,100,917 Car Dollars $11,899,083) Attempts: 2 of 2 used *(b) Determine the amount of the commission revenue to be reported by the franchises in 2020. Commission Revenue $ Attempts: 0 of 2 used