Part b

Buy More, Inc. sells a full assortment of computer parts, including motherboards, video cards, and cables. It also offers computer assembly services. A customer places an order for an advanced workstation, and Buy More asks for $3,500. If Buy More were to sell only the parts for the advanced workstation (that is, with no assembly service) the price would be $3,300.

Required

1. How many performance obligations are there in this arrangement?

2. If more than one performance obligation, how much of the contract price should be allocated to each performance obligation? (Use the residual approach.)