TB MC Qu. 6-123 (Algo) Wilson Links Products sells a product that involves...

Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $220. Wilson sells both the SwingRight and the SwingCoach as a package deal for $340. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $240 for similar software, and Wilsons prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $135 of cost per copy of the software, and usually charges 50% above cost on similar products.

Estimate the stand-alone selling price of the software using the residual approach.

Multiple Choice

$203

$270

$120

$220