Question
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
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 $230. Wilson sells both the SwingRight and the SwingCoach as a package deal for $360. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $260 for similar software, and Wilsons prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $145 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
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$130
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$240
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$290
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$218.0
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
