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 $160. Wilson sells both the SwingRight and the SwingCoach as a package deal for $220. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $120 for similar software, and Wilsons prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $75 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 expected cost plus margin approach.
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