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Waterway Centre is an experienced home appliance dealer. Waterway Centre also offers a number of services together with the home appliances that it sells. Assume
Waterway Centre is an experienced home appliance dealer. Waterway Centre also offers a number of services together with the home appliances that it sells. Assume that Waterway Centre sells ovens on a stand-alone basis. Waterway Centre also sells installation services and maintenance services for ovens. However, Waterway Centre does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services $ 1,120 1.232 1,288 1,350 In each instance in which maintenance services are provided, service is separately priced within the arrangement at $168. Additionally, the incremental amount charged by Waterway Centre for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Waterway Centre does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $1.120. Assume that a customer purchases an oven with both installation and maintenance services for $1,350. (b) Assume that a customer purchases an oven with both installation and maintenance services for $1,350. Allocate the transaction price of $1,350 among the performance obligations of the contract. (Round percentage allocations to 2 decimal places, eg. 12.25 and final answers to 0 decimal places, eg. 5,275.) Oven $ Installation $ Maintenance $
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