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Problem 5-2 Performance obligations; warranties, option [LO5-2, 5-4, 5-5] Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following One Protab computer A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months A coupon to purchase a Creative Probook e-book reader for $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $50 at other times as well. Creative estimates that 40% of customers will purchase an extended warranty Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $760 Required 1. & 2. Indicated below whether each item is a sep arate performance obligation and allocate the Protab Packages to the separate performance obligations in the transaction price of 100,000 contract. Performance Obligation? Percentage of Total Stand Alone Price Item Description Stand Alone Price Protab computers Limited 6-month warranty Probook discount vouchers Option to purchase extended warranty Total stand alone price