Please help solve #9.

Implementation guidance includes this example demonstrating application of this allocatic guidance to loyalty programs. Example 52-Customer Loyalty Program 55-353 An entity has a customer loyalty program that rewards a customer with I customer loyalty point for every $10 of purchases. Each point is redeemable for a $1 discount on any future purchases of the entity's products. During a reporting period, customers purchase products for $100,000 and carn 10,000 points that are redecmable for future purchases. The consideration is fixed, and the standalone selling price of the purchased products is $100,000. The entity expects 9,500 points to be redeemed. The entity estimates a standalone selling price of $0.95 per point (totalling $9,500 ) on the basis of the likelihood of redemption in accordance with paragraph 606105544. 55-354 The points provide a material right to customers that they would not receive without entering into a contract. Consequently, the entity concludes that the promise to provide points to the customer is a performance obligation. The entity allocates the transaction price ($100,000) to the product and the points on a relative standalone selling price basis as follows: Product $91,324[$100,000($100,000 standalone selling price $109,500)] Points $8,676[$100,000($9.500 standalone selling price $109,500)] 8. What factors are considered in computing the value of customer loyalty points? 9. In Cuppa Joe's case, take a shot at allocating the transaction price of $4.50 to the loyalty points and the current transaction (the latte). Assume that 50% of loyalty points are redeemed and that each punch is worth 1/10 of a cup of coffee (retail value for a medium collee at Cuppa Joe's is $3.00 )